Ethereum DeFi Protocol Term Finance Hit by $8.5M Governance Attack
A DeFi protocol called Term Finance on Ethereum was hit by an $8.5M governance attack on August 23rd.
The attacker exploited a weakness in Term Finance's DAO governance system, which allowed them to gain majority voting power after buying a large portion of the governance tokens at a low cost.
The hacker then submitted and approved malicious governance proposals that gave them control over Term Finance's vaults, holding users' assets. The attack drained approximately $8.5 million from Ethereum, with 2,843 ETH worth $6.87 million and 1.68 million USDC compromised.
This is not an isolated incident for Ethereum, as the protocol has been hit by several high-profile attacks this year, including a $7.54 million hack of the Verus-Ethereum Bridge in July.