Balance Stablecoin Peg Crashes After Oracle Exploit
On July 22, 2026, Balance Stablecoin (BLC) lost its peg due to an oracle exploit. An attacker manipulated the Bitcoin price feed, triggering bad liquidations in BTC-backed vaults and forcing improper liquidations. The attacker then minted and sold BLC into thin liquidity, draining collateral and confidence.
The attack resulted in a 99 percent crash of BLC's price from $1 to $0.0014. Estimated nominal value wiped out was $3.5 million. The attacker made around $912,000 in proceeds. The exploit is attributed to the Bitcoin oracle being manipulated, which led to improper liquidations and further destabilized the market.
Investigations by SlowMist and PeckShield found that the attacker used PancakeSwap to route newly created BLC into USDT and BTCB, capturing value before the market realized what was happening. The flow of money mattered greatly as the attacker minted against bad data then rushed to sell, racing liquidity and slippage.