Term Finance Crippled by $8.5M Governance Heist on Ethereum Vaults

Ethereum lending platform Term Finance has suffered an estimated $8.5 million loss after an attacker exploited governance weaknesses to drain around 68% of its Meta Vaults' assets.

The incident unfolded when an attacker acquired a majority of the project's sparsely held governance token, then allegedly used that voting power to pass proposals giving it control of the vaults.

Roughly 2,843 ether worth around $6.9 million and 1.68 million USDC were removed from Term's Meta Vaults, which sat on top of its broader lending platform.

Term has permanently shut the product, blocked new deposits, and removed governance permissions that allowed changes to the vaults.