Term Finance closes Meta Vaults after estimated $8.5 million exploit

Term Finance lost an estimated $8.5 million after an attacker exploited governance control of its strategy vaults. PeckShield said the attacker drained about 2,843 ETH, valued at $6.87 million at the time. The attacker also drained 1.68 million USDC and exchanged it for about 1.68 million DAI. CertiK estimated the total loss at around $8.5 million. DefiLlama data showed that the loss represented about 68% of the $12.45 million held in Term's vault product before the attack. The stolen assets included nearly all of Term's approximately $8.8 million in Ethereum deposits. Term Labs said it permanently shut down all Term Meta Vaults and revoked their DAO governance roles. The changes prevent further deposits, but withdrawals remain open. Term Labs said the underlying Term protocol and its direct borrowing and lending markets were unaffected based on its investigation so far. The company was still verifying the scope of the incident. Defimon said the attacker acquired a majority of a sparsely held governance token and passed proposals that enabled control of the vaults. Term had not confirmed how the attacker obtained voting control or which governance functions were used. Yearn said the attack involved a custom governance wrapper and did not affect standard Yearn vault setups. Term said it was coordinating with external security teams on asset recovery and remediation.