Balance Coin (BLC), an algorithmic stablecoin designed to track the U.S. dollar on BNB Chain, lost more than 99% of its value on July 22, 2026, after blockchain security firms reported a suspected exploit involving 42DAO, the decentralized organization behind the Balance Protocol ecosystem.
Onchain analysis by PeckShield and TenArmor identified two suspicious transactions that together drained approximately $915,000 from BLC liquidity pools. The first transaction minted around 4.5 million BLC from a null address before swapping them for Binance-pegged USDT and Binance Bitcoin (BTCB) on PancakeSwap V2. About two hours later, a second transaction used the same method to mint another 5,900 BLC and extract additional liquidity. The unauthorized minting flooded decentralized exchange pools, triggering a rapid depeg that pushed BLC from near its intended $1 peg to a record low of $0.001209.
At the time of reporting, BLC was trading near $0.00247, down 99.75% in 24 hours. PeckShield confirmed the incident and linked the collapse to the 42DAO exploit, though an official post-mortem from the project was not yet available. The event mirrors similar attacks on algorithmic stablecoins, such as Resolv’s USR depeg in March 2026 after an attacker minted millions of unbacked tokens, and the MAPO bridge exploit in May 2026 that erased 96% of its value.
