Term Labs vault exploit drains estimated $8.5M

Term Labs confirmed on Aug. 23 that a governance exploit had affected its lending vaults. Blockchain security firms estimated that the attacker extracted approximately $8.5 million in cryptocurrency. Summary Term Labs confirmed a governance exploit affected its vaults while investigators assessed the full damage. CertiK estimated losses near $8.5 million, but Term Labs has not publicly confirmed that figure. The identified address held approximately 2,843 ETH and 1.6 million DAI after the attack transactions. PeckShield traced the exploiter’s initial two-ETH funding to Tornado Cash before the vault transactions began. Term Labs has not announced recoveries, reimbursement terms, contract pauses, or a completed technical postmortem. The protocol said it was investigating and would release additional information afterward. It has not confirmed the loss estimate, identified the affected vaults or explained how the attacker gained governance control. Term Labs confirms its vault governance exploit “We are aware of a governance exploit impacting Term vaults,” Term said. “We will share more details once it has been further investigated.” We are aware of a governance exploit impacting Term...