Ethereum Lender Term Finance Hit with $8.5M Governance Exploit
Term Finance, an Ethereum lending platform, has suffered a significant loss after an attacker exploited its governance system to steal approximately $8.5 million in assets.
The incident occurred when the attacker acquired control of Term's Meta Vaults by cheaply buying up governance tokens and using that voting power to pass proposals giving it access to the vaults.
According to DefiLlama data, the Meta Vaults held around $12.45 million before the attack, with nearly all of the Ethereum deposited in the product being taken.
The attacker drained approximately 68% of the assets held in the Meta Vaults, including about $6.9 million worth of Ethereum and $1.68 million USDC.
Term has since shut down the Meta Vaults, blocked new deposits, and removed governance permissions that allowed changes to the vaults.