Term Finance Hit with $8.5 Million Loss as Attacker Exploits Governance Token

Ethereum lending platform Term Finance has suffered an estimated $8.5 million loss after an attacker seemingly acquired enough voting power to take control of some of its lending vaults.

The attack involved an attacker cheaply acquiring a majority of the project's sparsely held governance token, which gave holders voting rights over how the protocol is operated.

The attacker then allegedly used that voting power to pass proposals that gave it control of the vaults and drained about 68% of the assets held in Term’s vaults, worth around $6.9 million at the time.

Term's Meta Vaults held approximately $12.45 million before the attack, with nearly all of the roughly $8.8 million in Ethereum deposited in the product being taken by the attacker.