Term Finance Vault Exploited, Loses Estimated $8.5 Million

Term Finance has suffered an estimated $8.5 million loss after an attacker exploited governance control of its strategy vaults, according to blockchain security firms PeckShield and CertiK.

The attacker drained around 2,843 Ether (ETH), valued at approximately $6.87 million, and 1.68 million USDC, which was exchanged for about 1.68 million Dai (DAI).

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

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