$8.5M Term Finance Hack Exposes Weak Point in DeFi Governance

Term Finance, a decentralized lending protocol, suffered an estimated $8.5 million loss after an attacker exploited governance control over its strategy vaults.

The attack targeted Term Finance's Meta Vault product, which held about $12.45 million in assets before the incident.

The attacker allegedly gained majority governance control and used malicious proposals to authorize withdrawals from the affected vaults.

PeckShield and CertiK tracked the attacker's holdings, with PeckShield reporting 2,843 Ether worth $6.87 million and 1.68 million USDC.

Term Labs permanently closed new Meta Vault deposits and revoked DAO governance roles after confirming the exploit.