Hackers Steal $8.5 Million from Term Finance via Voting System Vulnerability

The lending platform Term Finance lost approximately $8.5 million following an attack in which unknown perpetrators took control of its vaults. Hackers exploited a weakness in the token voting system, allowing them to gain a controlling stake in the DAO system. Once in control, they voted through changes that granted them full authority over the Meta Vaults, from which the funds were transferred. About 2,843 Ethereum worth nearly $6.9 million and $1.68 million in USDC were stolen, which were quickly exchanged for DAI. The stolen assets accounted for nearly 68% of all assets in the vaults, which had a total value of $12.45 million before the incident. Experts noted that the attack was made possible due to low liquidity of the governance tokens. The Term Finance team has already blocked governance functions and disabled the ability to make new deposits. This is not the first incident involving technical issues in the project; in April 2025, an asset valuation failure led to the liquidation of user positions amounting to approximately 918 Ethereum.

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