Term Finance Hit by $8.5M Governance Exploit

A DeFi lending protocol called Term Finance has lost an estimated $8.5 million due to a governance exploit.

The attack occurred on Sunday, with PeckShield estimating that the attacker withdrew about 2,843 ETH worth roughly $6.9 million and 1.68 million USDC.

CertiK separately put the loss at roughly $8.5 million, saying it was a governance exploit that targeted Term's vaults. The vaults make up one part of Term Finance's offerings, with about $25.8 million in total value locked prior to the hack.

Term Labs acknowledged the issue on X, stating they were aware of a governance exploit impacting their vaults and would provide more detail after investigating.