Term Finance Vault Product Hit by $8.5M Governance-Related Theft

Term Finance has suffered a major governance-related theft of approximately $8.5 million from its vault product, Term Meta Vaults. The attacker allegedly gained control through voting power and used it to drain funds.

The stolen assets include about 2,843 ETH and 1.68 million USDC, valued at around $6.87 million and $1.68 million respectively. The attack is described as a governance takeover, where the attacker obtained voting power and passed proposals enabling vault control.

Term Labs has shut down all Term Meta Vaults and revoked their DAO governance roles to prevent further deposits while allowing withdrawals. The company claims its core protocol markets were not affected by the incident.