Term Finance Shuts Down Vaults After $8.5M Security Breach

Term Finance, an Ethereum-based fixed-rate lending protocol, has temporarily shut down all Term Meta Vaults and revoked DAO governance authority following a security breach. The incident resulted in the loss of approximately $8.5 million in assets from the vaults.

The team behind Term Finance confirmed that the exploit was limited to the vault governance mechanism and did not compromise the core protocol or lending market. However, new deposits are no longer accepted, and the vaults cannot be restarted.

Withdrawals remain available for users who need to access their funds, but the process may take time given the ongoing investigation. Term Finance is collaborating with external security firms to trace and recover the stolen assets.