Balance Coin (BLC) lost more than 99% after a suspected exploit linked to 42DAO and GemJoin on BNB Chain. PeckShield estimated losses at about $915,000, while on-chain reports traced unauthorized minting across two suspicious transactions. The algorithmic stablecoin fell from nearly $1 to an all-time low of $0.001209 on July 22.
TenArmor reported that the first transaction created about 4.5 million BLC tokens from a null address. The newly created supply then moved into PancakeSwap V2 liquidity pools. The attacker exchanged the tokens for Binance-pegged USDT, also called BSC-USD, and Binance Bitcoin, known as BTCB. Those swaps removed assets from the available decentralized exchange liquidity.
Around two hours later, a second transaction followed the same reported pattern. The attacker minted another 5,900 BLC and extracted more assets from the remaining liquidity. The sudden supply increase placed heavy selling pressure on BLC. As the unauthorized tokens entered trading pools, the stablecoin moved sharply below its intended $1 value.
42DAO has not published a detailed post-incident report. Therefore, the exact technical weakness and the full scale of the damage remain unclear. Balance Coin serves as the stablecoin within the Balance Protocol ecosystem. CoinMarketCap describes it as an algorithmic stablecoin on BNB Chain that targets a value near the US dollar.
Meanwhile, 42DAO describes BLC as part of its broader financial ecosystem. After the reported exploit, the token recovered slightly from its intraday low but remained more than 99% below its earlier level.
Other projects have faced similar supply shocks. Resolv’s USR stablecoin lost its peg in March after an attacker minted millions of unbacked tokens and exchanged them through decentralized finance markets.
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In May, attackers reportedly exploited a bridge flaw to create unauthorized MAPO tokens. They sold those tokens through decentralized exchanges, and MAPO fell 96%. Stake DAO also suffered an exploit in May. An attacker reportedly minted trillions of vsdCRV tokens before exchanging them for Ether.
Each incident involved a different reported weakness. Still, each attacker gained the ability to create tokens outside the expected supply process and sell them into available liquidity. For Balance Coin, attention remains on the reported 42DAO exploit and BLC’s near-total depeg. Available on-chain reports currently point to two suspected transactions linked to GemJoin and 42DAO.
Balance Coin lost more than 99% after suspected unauthorized minting linked to 42DAO and GemJoin drained about $915,000 from BNB Chain liquidity pools. The incident shows how uncontrolled token creation can quickly destroy a stablecoin’s value. Market participants should monitor official updates and verified on-chain findings.