Term Finance Hit for $8.5M in Governance Exploit

Ethereum lending platform Term Finance has suffered an estimated $8.5 million loss after an attacker manipulated governance voting power to take control of some of its Meta Vaults.

The attack involved removing roughly 2,843 ether, worth about $6.9 million at the time, and 1.68 million USDC from the vaults, which held around 68% of the assets before the incident.

According to onchain monitoring service Defimon, the attacker acquired a majority of the project's governance token cheaply, then used that voting power to pass proposals giving it control of the vaults.

Term has shut down the Meta Vaults product, blocked new deposits, and removed governance permissions that allowed changes to the vaults. The company is working with security firms to recover assets and cover remaining losses.