$8.5M Stolen from Term Finance via Exploited DAO Governance

A DeFi lending protocol called Term Finance on Ethereum suffered an $8.5 million loss after a hacker exploited its DAO governance system. The attacker bought a majority of governance tokens at low cost, allowing them to approve malicious proposals and drain 2,843 ETH and 1.68 million USDC. These funds were then swapped for DAI.

The incident highlights ongoing security risks in Ethereum, which has seen over $332 million lost in crypto fraud in H1 2026. This contributed to a nearly 49% price drop in ETH over the past year amid repeated hacks and regulatory challenges.