Term Finance Hit with $8.5M Governance Attack on Ethereum Vaults

Ethereum lending platform Term Finance suffered an estimated $8.5 million loss after an attacker exploited its governance system to drain nearly 68% of its Meta Vaults' holdings.

The attack occurred when the 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.

Term Finance has permanently shut the product, blocked new deposits, and removed governance permissions. The team is working with outside security firms to recover assets and cover any remaining losses.