Balance stablecoin collapses 99% after $1 million exploit drains its bitcoin vaults
CoinDesk 2026-07-22 09:01:54
Context: The Balance stablecoin suffered a catastrophic collapse, plummeting 99% in value, following a sophisticated exploit that drained its bitcoin vaults of approximately $1 million. The attack involved manipulating the lending system with a fake, abnormally low bitcoin price, allowing the attacker to liquidate supposedly secure vaults and reap the profits. This incident has sent shockwaves through the cryptocurrency market.
Key Facts
- The exploit was carried out through a single transaction, in which the attacker took advantage of the lending system's vulnerability to a fake, abnormally low bitcoin price, allowing them to liquidate vaults that should have been safe.
- The attacker pocketed the difference between the manipulated price and the actual value, resulting in a haul of approximately $1 million, which was drained from the stablecoin's bitcoin vaults.
- The Balance stablecoin's value collapsed by 99% in the aftermath of the exploit, highlighting the severity of the incident and the potential risks associated with such attacks on cryptocurrency systems.