42DAO Exploit Leads to Significant Losses
The 42DAO protocol on BSC was exploited, resulting in a loss of $915,000. The attack involved manipulating the Median Oracle, leading to forced liquidations and a drastic drop in the value of Balance Coin.
On July 22, 2026, the 42DAO protocol experienced a significant security incident. An attacker manipulated the Median Oracle by setting an abnormally low price for BTCB, which triggered forced liquidations of multiple BTCB vaults. This exploitation resulted in a profit of approximately $915,000 for the attacker.
As a consequence of the exploit, the algorithmic stablecoin Balance Coin (BLC) suffered a severe crash, plummeting over 99% from nearly $1 to around $0.001. This incident highlights vulnerabilities within the protocol and the potential risks associated with oracle manipulation.
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