$8.5 Million Stolen from Term Labs in Governance Exploit
Term Labs, a DeFi lending protocol, suffered an $8.5 million loss due to a governance exploit on Sunday. The attacker pulled 2,843 Ethereum (ETH) and 1.68 million USDC from the protocol's Term vaults.
According to PeckShield, the blockchain security firm that reported the incident, the attacker then swapped the USDC into roughly 1.68 million Dai (DAI). The ETH portion was valued at $6.87 million, and the stablecoin portion at $1.68 million.
The wallet behind the attack was originally seeded with 2 ETH withdrawn from Tornado Cash. This method of mixing funds is a common precursor to on-chain theft.
Term Labs runs fixed-rate lending through on-chain auctions, with a total value locked in its vaults standing at $12.2 million, according to DefiLlama. The team has not yet named the specific governance function the attacker abused.