Suspicious attack on BSC-linked GemJoin and 42DAO causes about $900,000 loss

Balance Protocol’s Balance Coin lost its dollar peg and plunged 99.92% to about $0.000795 on July 22, 2026 after an attack on BNB Chain-linked 42DAO exploited oracle and liquidation weaknesses, draining about $912,000 in BTCB from vaults. SlowMist and PeckShield said the exploit used a manipulated Median Oracle price feed: the attacker pushed an artificially low BTCB price through the Spotter contract’s poke function, causing healthy collateralized vaults to appear insolvent and be liquidated through the Dog module. The seized BTCB was then sold on PancakeSwap. BLC, which had traded near $0.995 to $1.00 before the attack, briefly fell to around $0.0014 and later traded between roughly $0.0008 and $0.0013 on major trackers. The collapse wiped out nearly all of its roughly $3.5 million nominal value, cutting market capitalization to about $2,800, while 24-hour trading volume rose to about $103,000. SlowMist described the exploit as a single-transaction combination made possible by missing safeguards including price deviation checks, drawdown limits, a price floor and any delay between oracle updates and liquidations. No private keys were compromised, and 42DAO has not announced a recovery plan or compensation for affected users.