The exploit drained approximately $8.5 million in assets, including 2,843 ETH and $1.6 million DAI, from Term Labs vaults.
Term Labs, a decentralized finance lending protocol, confirmed an $8.5 million loss due to a governance exploit targeting its vaults. The attack was flagged by blockchain security firms, which reported the exploiter holding 2,843 ETH and $1.6 million in DAI.
The attacker’s address was initially funded with 2 ETH from Tornado Cash, a privacy-focused mixer. No prior incidents of this scale have been reported for Term Labs, though governance exploits remain a recurring risk in DeFi protocols.
Term Labs stated it is investigating the breach and will release further details as they become available.