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Term Finance closes vaults after governance attack drains assets

The attacker removed about 2,843 ether and 1.68 million USDC, draining roughly 68 percent of Term’s Meta Vaults, which had about $12.45 million before the incident.

Reported · Written up by our desk · DeFi

CoinDesk reports that Ethereum lending platform Term Finance lost an estimated $8.5 million after an attacker appeared to acquire enough governance voting power to take control of its Meta Vaults.

The attacker allegedly removed roughly 2,843 ether and 1.68 million USDC from the vaults, taking about 68 percent of the assets held there. Term said nearly all of the roughly $8.8 million in ether deposited in the product was taken, with DefiLlama data placing the Meta Vaults at about $12.45 million before the attack.

After investigating, Term permanently closed the vault product, blocked new deposits, and removed the governance permissions that allowed changes to the vaults. The company said the wider Term Finance protocol, including its direct borrowing and lending markets, was not affected based on its findings so far.

CoinDesk also notes that Defimon said the attacker cheaply acquired a majority of Term’s sparsely held governance token, allowing it to pass proposals to gain control over the vaults, though Term has not confirmed how the attacker obtained majority control or which governance functions were used. Term said it is working with outside security teams to recover assets and will look at ways to cover any remaining losses.

Latest closeEthereum $2,460.49 ▼0.1%

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