Term Labs loses $8.5 million in governance exploit

Term Labs lost roughly $8.5 million after a governance exploit affected its Term vaults on Sunday. PeckShield reported that the attacker withdrew 2,843 ETH from the protocol. PeckShield valued the ETH at $6.87 million. The attacker also withdrew 1.68 million USDC. PeckShield valued the USDC at $1.68 million. The attacker swapped the USDC for roughly 1.68 million DAI. Term Labs confirmed the incident and said it would provide a fuller account after its investigation. The team has not identified the specific governance function that the attacker exploited. DefiLlama valued the Term vaults' total value locked at $12.2 million. Ethereum accounted for $8.6 million of that total. DefiLlama had recorded 17 security incidents worth about $18.8 million in August before the Term Labs loss. The Term Labs loss would raise the August total above $27 million.