11h ago

Bitcoin-backed stablecoin Balance Coin (BLC) plunges over 99% after $912,000 oracle exploit

AI Market Summary

Balance Coin (BLC), a BTC-collateralized stablecoin, collapsed >99% after an oracle manipulation reportedly fed an artificially low BTC price, triggering vault liquidations and allowing the attacker to seize collateral and realize about $912k. While isolated, the event highlights oracle and liquidation-path fragility in BTC-backed stablecoin designs, likely increasing risk premia for similar protocols and dampening sentiment toward collateralized stablecoin mechanisms.

Impact level

● Medium

Affected assets

BTC/USDT-0.68%

AI Insight · BTC/USDTAI Insight

▼ Bearish

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Balance Coin (BLC), a newly launched Bitcoin-collateralized stablecoin designed to hold a $1 peg, was hit by an oracle attack after an attacker submitted a falsely low BTC price. The manipulated price triggered liquidations across vaults, allowing the attacker to seize the BTC collateral and cash out about $912,000. BLC fell more than 99%, bottoming at $0.00075 and leaving its market value at about $2,570.

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