Term Labs Vault Exploit Drains Estimated $8.5 Million

Term Labs, a decentralized lending protocol, has fallen victim to a governance exploit that has drained an estimated $8.5 million from its vaults.

The incident occurred on August 23 and was confirmed by Term Labs in a tweet stating that a 'governance exploit impacting Term vaults' had been identified.

Blockchain security firms, including CertiK and PeckShield, have estimated the loss at approximately $8.5 million, with CertiK classifying it as a governance attack.

The exploiter allegedly drained 2,843 $ETH (valued at about $6.87 million) and 1.68 million $USDC, which was subsequently exchanged for approximately 1.68 million $DAI.