Digital Asset
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Security Incident · ETH Ecosystem

TermFinance Vaults Governance Attack: $8.50M Reported Loss

·Historical incident record

Incident Overview

On August 23, 2026, Term Finance’s Strategy Vaults (Ethereum-based fixed-rate lending protocol by Term Labs) suffered a governance exploit. The attacker acquired majority voting power (100% on several USDC vaults, ~91% on the ETH Meta Vault), passed malicious proposals to disable the timelock and drain ~2,843 ETH and 1.68M USDC (later swapped to DAI), resulting in ~$8.5 million losses (about 68% of the vaults’ then-TVL).

Sources & References

Original incident referencehttps://x.com/term_labs/status/2091428394130886740 (opens in a new tab)

This record presents information attributed to the linked sources. Incident dates describe the original event, not a new report. Reported loss figures reflect the source record and are not current market valuations.

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