Attacker Hijacks Term Finance DAO Governance Vote for $8.5 Million

Term Finance, an Ethereum-based fixed-rate lending protocol, suffered a significant loss of approximately $8.5 million on August 23, 2026, after an attacker hijacked its DAO governance vote.

The attacker quietly cornered a majority of the sparsely held DAO governance token and passed malicious proposals to seize control of the protocol's strategy vaults.

Roughly $6.87 million in Ethereum (ETH) and $1.68 million in USDC were pulled from the vaults, with the USDC subsequently swapped into approximately 1.68 million DAI.

The attacker funneled all proceeds to a single consolidation wallet beginning with 0xD5183.