Term Finance Suffers Estimated $8.5 Million Loss in Governance Vault Exploit

Decentralized lending protocol Term Finance has suffered an estimated $8.5 million loss after an attacker exploited governance control of its strategy vaults.

The attack, which occurred on Sunday, saw the attacker drain approximately 2,843 Ether (ETH), valued at $6.87 million at the time, and 1.68 million USDC, exchanged for around 1.68 million Dai (DAI).

Term Labs has irreversibly shut down all Term Meta Vaults and revoked their DAO governance roles, permanently preventing further deposits while keeping withdrawals open.

The company's underlying protocol and direct borrowing and lending markets were unaffected by the attack, although Term is still verifying the scope of the incident.