Exchange Ranking
Top Exchanges
24h Volume Ranking
Popularity Ranking
Exchange BTC Balance
Proof of Reserves
Decentralized Exchanges
Funding Rate
Funding Heatmap
Liquidation Data
Max Pain
Long/Short Ratio
Whale L/S Ratio
Binance/Okex/Huobi L/S
Bitfinex Margin L/S
ETF Tracker
Solana ETF
XRP ETF
Hong Kong ETF
Bitcoin Treasuries
Crypto Reversal
Ethereum Reserves
HyperLiquid Wallet Analysis
Hyperliquid Whale Watch
Large Transactions
On-chain Movement
Bitcoin ROI
Stablecoin Market Cap
Options Analysis
News
Articles
Economic Calendar
Features
Wallet
Contract Calculator
Security
Collections
Watchlist
FollowingOracle manipulation resulted in the theft of approximately US$912,000 from 42DAO, and Balance Coin plunged more than 99%
Oracle manipulation resulted in the theft of approximately US$912,000 from 42DAO, and Balance Coin (BLC) plunged more than 99%. The lack of oracle authentication and protection mechanisms allows hackers to manipulate BTCB prices and trigger clearing. A flaw in the 42DAO pricing mechanism triggered the latest chaos in the decentralized financial ecosystem this year. Hackers used a vulnerability designed by the protocol oracle to steal approximately $912,000 and caused Balance Coin (BLC) to plummet more than 99%. BLC fell from close to 1 dollar to less than 1 cent, and market confidence instantly collapsed.
The attacker used the protocol's Spotter poke function to inject artificially low BTCB prices into the accounting contract. Since the 42DAO does not set price deviation limits, minimum price requirements and maximum retracement limits, the low price takes effect immediately and automatically triggers the clearing system. The wrong price was used to automatically trigger the Dog clearing module of multiple BTCB mortgage vaults.
Design flaws lead to losses
This attack clearly shows that when price-fixing is used, the lack of security measures for oracles can easily lead to significant losses. Unlike attacking encryption algorithms, this attack involved design flaws in the price oracle and clearing process. As automatic clearing spread through the agreement, selling pressure caused the value of Balance Coin to fall rapidly. After the attack, the market value of BLC fell to about $12,000 due to large withdrawals by traders on decentralized exchanges.
DeFi domain oracle security threats are growing
This security breach is just one of several large decentralized financial hacking incidents that have occurred in recent months. Hackers used a liquidity pool ratio vulnerability to steal approximately $1.65 million, causing the Allbridge project to stop its cross-chain services. Syscoin was hacked, resulting in a large number of counterfeit coins being minted. Echo Protocol also stopped cross-chain transactions after unauthorized casting of eBTC. All of these incidents have one thing in common: hackers are now trying to find holes in the protocol architecture rather than trying to crack encryption algorithms. Security experts continue to advise developers to include verification of oracle machines, limit price deviations, and apply other clearing controls before deploying smart contracts on the main network. As the DeFi field expands, preventing oracle attacks is crucial to protocol stability and user financial protection.
