A hacker exploited a vulnerability in the protocol's governance mechanism and gained access to the Term Vaults. As a result, they withdrew 2,843 Ether and approximately 1.6 million DAI stablecoins.
The developers of Term Labs acknowledged that the service's Term Vaults were compromised due to a critical error in the governance system's logic. Restrictions have been imposed on smart contracts associated with the vulnerable module to prevent further leaks.
The stolen funds are currently held in a single wallet belonging to the hacker. According to specialists at CertiK, the malicious actor has not attempted to transfer the assets to crypto mixers like Tornado Cash or withdraw them to centralized exchanges.
This is not the first incident for the Term architecture. Previously, in the spring of 2025, the project faced a loss of $1.5 million due to an incorrect update of the liquidity oracle.
Earlier, security specialists from the PeckShield platform reported that the decentralized cross-chain project Maya Protocol suffered a hacker attack, resulting in the withdrawal of about $1.7 million in crypto assets.
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