$8.5M Governance Exploit Hits Term Labs Lending Protocol

Term Labs, an Ethereum-based lending protocol, has been hit by an $8.5 million governance exploit. The attack occurred on August 23 and involved draining Ethereum and USDC from affected Term vaults.

The incident was confirmed by Term Labs through its official X account, with the team stating that it remains under investigation. PeckShield, a blockchain security firm, tracked the outflows of approximately $8.5 million in losses, including 2,843 ETH valued at around $6.87 million and 1.68 million USDC.

CertiK also reported tracking the attacker's address as 0xD5183d8BfC65a50863C62aF2538198A8288FFc13, which later held 2,843 ETH and roughly 1.6 million DAI.