$8.5M Lost as Attacker Exploits Term Finance Governance System

Term Finance has suffered an estimated $8.5 million loss after an attacker exploited its governance system and drained funds from its Meta Vaults.

The attack occurred on August 23, with approximately 2,843 Ethereum (ETH) worth around $6.87 million at the time being removed from the vaults. Additionally, 1.68 million USD Coin (USDC) was converted into an equivalent amount of Dai (DAI).

Term Finance's vaults held a total of $12.45 million before the attack, with the stolen funds representing about 68% of that total. The majority of the stolen ETH deposits were nearly all removed.

The attacker gained control by acquiring a majority of a sparsely held governance token at low cost and using it to pass proposals giving it control over the vault contracts.