Overview
- Blockchain security firms and onchain researchers say the exploit combined a manipulated Binance‑pegged bitcoin (BTCB) oracle with unauthorized minting to drain the protocol.
- TenArmor and others traced two suspicious BNB Chain transactions that minted roughly 4.5 million BLC then about 5,900 BLC from a null address and sold them through PancakeSwap.
- The attacker converted seized collateral and swapped BLC for USDT and BTCB, netting roughly $912,000–$915,000 for the exploit.
- The mint-and-dump and forced liquidations tore BLC from near its $1 peg to as low as about $0.0012, a drop of more than 99% in hours.
- 42DAO had not issued a public post‑mortem at the time of reporting, leaving technical attribution and remediation plans dependent on security-firm analyses and onchain traces and highlighting a recurring DeFi failure pattern that directly harms token holders.