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Balance Coin (BLC) Oracle Manipulation / 42DAO

avoid.net/balance-coin-blc-oracle-manipulation-42dao→4/100·78% conf.
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Summary

Balance Coin (BLC) is a USD-pegged stablecoin issued by the Balance Protocol, governed by 42DAO on BNB Chain. On July 22, 2026, an oracle manipulation exploit targeting the protocol's unprotected Spotter and GemJoin modules drained approximately $912,000–$915,000, causing BLC to collapse more than 99% from its $1 peg. The 42DAO team issued no public statement or recovery plan in the aftermath, and the exploit was executed twice within two hours with no circuit breaker triggering between incidents.

Connected Entities

1 entities · 10 linked investigations
Tokens
♦Balance Coin (BLC) Oracle Manipulation / 42DAO
Relationships
    Also appears in
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    Have evidence about Balance Coin (BLC) Oracle Manipulation / 42DAO?

    Timeline(5 events)

    27 January 2025

    CertiK delivers audit of the 42DAO BLC Minting smart contract, identifying 13 findings (0 critical, 1 major centralization risk). All findings acknowledged by team; none resolved.

    CertiK Skynet - 42DAO Project Page

    22 July 2026

    Attacker exploits 42DAO's Median Oracle on BNB Chain by injecting an artificially low BTCB price via the Spotter poke function. Dog liquidation module triggers mass vault liquidations. Attacker mints approximately 4.5 million unbacked BLC tokens from a null address via GemJoin and swaps them for BSC-USD and BTCB on PancakeSwap V2. Approximately $912,000–$915,000 is drained. BLC price collapses from ~$0.9954 to ~$0.001358 (over 99% decline).

    CryptoTimes / PeckShield / SlowMist / TenArmor

    22 July 2026

    Approximately two hours after the initial exploit, an identical replay transaction mints an additional 5,900 BLC from a null address and drains further liquidity from PancakeSwap V2. No circuit breaker or pause mechanism activated between the two attacks.

    TFTC / Blockonomi / Crypto.news

    22 July 2026

    PeckShield publicly reports the exploit, estimating losses at $915,000. TenArmor flags suspicious GemJoin transactions on BNB Chain. SlowMist publishes analysis attributing root cause to the unprotected Median Oracle and absent Spotter safeguards.

    Blockonomi / CryptoRank / Cryptopolitan

    29 July 2026

    No public statement, post-mortem, or recovery plan from 42DAO has been published. The incident remains unresolved with no team communication recorded in available reporting.

    Multiple news sources confirming team silence
    Provenance & Audit Trail
    Anchored on SolanaVerify on-chain19 Wayback Archives

    Decision Log

    This investigation is cryptographically anchored to the Solana blockchain (3 events). 19 of 19 cited source URLs have an Internet Archive snapshot.

    full audit log →version history →

    model: claude-sonnet-4-6

    generated: 7/29/2026, 12:31:54 PM

    last updated: 8/27/2026, 2:06:25 AM

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