$8.5M Loss as Governance Token Taken Over in Hostile Takeover
Term Finance, an Ethereum-based lending platform, has suffered significant losses following a hostile governance takeover. The attack resulted in an estimated $8.5 million loss after an external actor acquired majority control of its governance token and drained funds from Meta Vaults.
The attacker purchased a majority of the project's governance token on the open market, which granted them voting rights to approve proposals that transferred operational control of the vaults. This led to the withdrawal of approximately 2,843 ETH, valued at $6.9 million, and 1.68 million USDC, representing 68% of the assets under management.
Term Finance's team permanently shut down the affected product, blocked new deposits, and removed governance permissions that allowed vault modifications. The protocol is working with external security teams on asset recovery and evaluating mechanisms to cover remaining losses.