Key TakeawaysBalance Coin (BLC) plummeted over 99% following a security breach on BNB ChainHackers minted millions of unauthorized BLC tokens and converted them to USDT and BTCBThe attack involved two malicious transactions that siphoned approximately $915,000 from the ecosystemBlockchain security analysts SlowMist and PeckShield identified a Bitcoin price oracle vulnerability as the exploit vectorThe incident targeted 42DAO, which governs the Balance Protocol infrastructureAn algorithmic stablecoin designed to maintain parity with the US dollar, Balance Coin experienced a catastrophic collapse on July 22 following reports from blockchain security researchers of an exploit targeting the 42DAO platform on BNB Chain.The digital asset plunged from approximately $1 to an all-time low of $0.001209 within hours. According to CoinMarketCap data at press time, Balance Coin was changing hands at roughly $0.00247, representing a staggering 99.75% decline in a single day.Cybersecurity firm PeckShield calculated total damages at approximately $915,000. The company traced the incident to vulnerabilities within 42DAO, the decentralized autonomous organization responsible for managing the Balance Protocol.#PeckShieldAlert Balance Coin $BLC has plummeted -99% @42dao_official @42dao_official has been exploited for ~$915K pic.twitter.com/1bdRpMQBs3— PeckShieldAlert (@PeckShieldAlert) July 22, 2026Security researcher TenArmor identified two questionable transactions connected to GemJoin and 42DAO operating on BNB Chain. The initial transaction created approximately 4.5 million BLC tokens from a zero address before transferring them to PancakeSwap V2.Following this, the perpetrator exchanged the freshly created BLC for Binance-pegged USDT and Binance Bitcoin. Approximately two hours afterward, a follow-up transaction employed identical tactics to generate another 5,900 BLC and drain additional funds from liquidity reserves.Understanding the Oracle Price ManipulationAccording to SlowMist’s analysis, the perpetrators leveraged a manipulated Binance Bitcoin oracle that displayed an artificially deflated price. This deception caused the protocol to incorrectly flag secure Bitcoin-collateralized vaults as vulnerable to liquidation.“The attacker executed a single-transaction combination that took advantage of absent price safeguards and liquidation delays within a Maker-inspired architecture,” SlowMist explained. The bad actor liquidated numerous BTCB vaults and captured the resulting spread.The creation of uncollateralized tokens saturated decentralized exchange liquidity pools with excessive BLC inventory. This overwhelming sell pressure drove the token far below its dollar benchmark without any effective stabilization mechanism in place.Unauthorized Token Creation Continues Plaguing DeFi PlatformsSimilar attack patterns have emerged across multiple protocols. Last May, MAPO experienced a 96% value decline after malicious actors leveraged a bridge vulnerability to create unauthorized tokens and liquidate them through decentralized trading platforms.In a separate incident, Stake DAO encountered an exploit where perpetrators generated trillions of vsdCRV tokens before converting them to ETH. Additionally, Resolv’s USR stablecoin departed from its peg in March following a comparable unauthorized minting event.Balance Coin functions as the primary stablecoin within the Balance Protocol ecosystem, which according to its GitBook documentation is predominantly collateralized by Bitcoin Cash.An official post-mortem analysis from 42DAO remained unpublished at the time of this report. Cointelegraph indicated it attempted to contact 42DAO for official commentary, though no statement had been made available.The blockchain evidence identifies two suspected transactions as the origin of the security breach, with damages verified at roughly $915,000 by multiple security organizations.The post Balance Coin (BLC) Plummets 99% Following $915K Oracle Exploit on BNB Chain appeared first on Blockonomi.