Term Labs vault exploit drains $8.5M

• Term Labs confirmed a governance exploit affected its lending vaults on 23 August.
• Security firms estimated losses at about $8.5 million, but Term Labs has not confirmed that figure.
• The attacker reportedly drained 2,843 ETH and 1.68 million USDC from the affected vaults.

Term Labs confirmed a governance exploit affected its vaults, with security firms estimating losses of about $8.5 million.

Term Labs has not confirmed the $8.5 million estimate or identified which vaults were affected.

“We are aware of a governance exploit impacting Term vaults,” Term Labs said on X.

PeckShield said the attacker drained about 2,843 ETH, worth $6.87 million, and 1.68 million USDC.

The attacker later swapped the USDC for about 1.68 million DAI, according to PeckShield’s transaction tracking.

PeckShield also traced an initial transfer of 2 ETH to the attacker’s address from Tornado Cash.

Term Labs has not announced recoveries, repayment terms, contract pauses or a technical postmortem.