Question 1

What caused Balance Coin to lose its dollar peg?

Accepted Answer

An attacker manipulated Balance Protocol's BTCB price oracle, feeding it an abnormally low bitcoin price that made overcollateralized vaults appear insolvent and let the attacker liquidate them and seize the collateral.

Question 2

How much did the attacker take?

Accepted Answer

Security firms estimated the loss at roughly $912,000 (SlowMist) to $915,000 (PeckShield), drained from 42DAO, the governance entity behind Balance Protocol.

Question 3

Why did the project's CertiK audit not prevent the attack?

Accepted Answer

Standard smart-contract audits review on-chain code for flaws like reentrancy and access-control errors, and treat oracle inputs as trusted, so a CertiK audit of the minting contract would not have flagged the missing price validation and liquidation delay that made the attack possible.

BLC

Balance Coin crashes 99% after oracle attack drains $912,000 from 42DAO

One sharp brief.
Every day.

BLC

Balance Coin crashes 99% after oracle attack drains $912,000 from 42DAO

One sharp brief.Every day.

One sharp brief.
Every day.