Blockchain & Cryptocurrency , Cryptocurrency Fraud , Fraud Management & Cybercrime

Cryptohack Roundup: Term Finance Hack

Every week, ISMG rounds up cybersecurity incidents in digital assets. This week, hackers stole $8.5M from Term Finance, BounceBit to shutter blockchain after hack, Profit Connect and Block Bits Capital founders convicted in fraud cases, Roman Storm's retrial delayed and AI use in crypto-linked crime jumped 40%.

Term Finance Vaults Lose $8.5 Million in Exploit

Term Finance lost about $8.5 million after an attacker exploited the governance system controlling its Ethereum-based lending vaults, said security firms PeckShield and CertiK.

The attacker withdrew ether and USDC, a stablecoin designed to track the U.S. dollar. PeckShield traced the stolen assets to an address that had earlier received funds through cryptocurrency mixer Tornado Cash.

Term said it was a governance exploit but has not disclosed how the attacker gained control. Its system normally delays governance changes for seven days and allows liquidity providers to block suspicious proposals.