Term Finance loses estimated $8.5M in vault governance exploit

Term permanently closed its Meta Vaults after an attack reportedly removed nearly all of their Ethereum deposits.

Decentralized lending protocol Term Finance lost an estimated $8.5 million after an attacker exploited governance control of its strategy vaults, according to blockchain security firms. 

On Sunday, PeckShield said the attacker drained about 2,843 Ether (ETH), valued at $6.87 million at the time, and 1.68 million USDC, which was exchanged for approximately 1.68 million Dai (DAI). CertiK made a similar estimate, placing the total loss at around $8.5 million. 

The reported loss represented about 68% of the $12.45 million held in Term’s vault product before the attack, including nearly all of its approximately $8.8 million in Ethereum deposits, according to Defillama data. 

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