Term Finance Governance Exploit Leaves Millions Drained

A recent exploit on Term Finance's vaults has left millions of dollars in digital assets drained. The attacker needed less than $1,000 to gain control and withdraw approximately $8.5 million in ETH and USDC.

The attack was made possible by low participation in the governance system, which allowed a single purchase of 0.4852 tmvETH for roughly $951 to secure 90.66% of all existing votes in the pool.

Vaults holding trUSD, strUSD, or Ecosystem Vault positions were unaffected, and users are not required to take any action according to Tori project. Total value locked across Term's vaults stood at roughly $12.45 million before the breach.