Term Labs Vault Exploit Drains $8.5M in Lending Losses

Term Labs has confirmed that its lending vaults were affected by a governance exploit on August 23. Security firms estimate the losses to be around $8.5 million, although Term Labs has not confirmed this figure.

The attacker reportedly drained 2,843 ETH and 1.68 million USDC from the affected vaults. PeckShield estimated that the lost Ethereum is worth approximately $6.87 million.

Term Labs stated on X that they are 'aware of a governance exploit impacting Term vaults.' They have not announced any recoveries or repayment terms, nor have they paused contracts or released a technical postmortem.