Balance Coin crashes 99% after reported $915K 42DAO exploit

Balance Coin (BLC), an algorithmic stablecoin designed to track the U.S. dollar, lost more than 99% of its value after blockchain security firms reported a suspected exploit involving 42DAO. Summary Balance Coin lost more than 99% after security firms linked its collapse to 42DAO exploit. Attackers reportedly minted unbacked BLC before swapping tokens for USDT and BTCB through PancakeSwap pools. Two suspicious transactions on BNB Chain reportedly extracted about $915,000 as Balance Coin rapidly depegged. PeckShield said the incident caused about $915,000 in losses and linked the BLC collapse to an exploit affecting 42DAO, the decentralized organization connected to the Balance Protocol ecosystem. The security firm said Balance Coin “has plummeted -99%” following the reported attack. #PeckShieldAlert Balance Coin $BLC has plummeted -99% @42dao_official@42dao_official has been exploited for ~$915K pic.twitter.com/1bdRpMQBs3 — PeckShield July 22, 2026 The price fell from close to its intended $1 peg to a record low of $0.001209 on July 22. At the time of checking, CoinMarketCap showed BLC trading near $0.00247, down 99.75% over 24 hours. Its 24-hour range stretched from $0.001209 to $0.9955. You might also like: Balaji pivots to Kazakhstan after Network School loses Malaysia licence Security firms trace suspected attack to two transactions TenArmor reported detecting two suspicious transactions involving GemJoin and 42DAO on BNB Chain. Onchain data cited in reports showed that the first transaction minted about 4.5 million BLC from a null address before moving the tokens to PancakeSwap V2. The attacker then reportedly swapped the newly created BLC for Binance-pegged USDT, also known as BSC-USD, and Binance Bitcoin (BTCB). Around two hours later, a second transaction allegedly used the same method to mint another 5,900 BLC and extract more assets from available liquidity. The reported minting increased the number of BLC tokens available for sale without the normal controls expected from the protocol. As the newly created tokens entered decentralized exchange pools, selling pressure pushed BLC sharply away from its dollar target. PeckShield estimated the losses at about $915,000. However, the security firms described the event based on their analysis of onchain activity, and a detailed post-incident report from 42DAO had not been identified in the latest available public information reviewed for this report. Balance Coin loses its U.S. dollar peg Balance Coin operates as the stablecoin at the center of the Balance Protocol ecosystem. CoinMarketCap describes BLC as an algorithmic stablecoin on BNB Chain designed to maintain a stable value against the U.S. dollar, while 42DAO describes the token as part of its wider financial ecosystem. The token’s fall left it trading at a small fraction of its intended value. Although its price recovered slightly from the intraday low, it remained more than 99% below the level recorded before the reported exploit when checked.