Term Finance Shuts Down All Vaults Following Exploit, Withdrawals Remain Open

BitcoinWorld

Term Finance Shuts Down All Vaults Following Exploit, Withdrawals Remain Open

Ethereum-based fixed-rate lending protocol Term Finance has announced the shutdown of all Term Meta Vaults and the revocation of DAO governance authority following a recent security breach. The move comes as the project continues to investigate the incident and work on recovery efforts.

What Happened at Term Finance

In a post on X (formerly Twitter), Term Finance confirmed that all Term Meta Vaults have been permanently closed. New deposits are no longer accepted, and the vaults cannot be restarted. However, the team stated that withdrawals remain available for users who need to access their funds.

According to the project’s preliminary investigation, the exploit was limited to the vault governance mechanism and did not compromise the underlying protocol or the lending market itself. The team emphasized that core protocol functions remain unaffected.

Recovery Efforts and Next Steps

Term Finance is collaborating with external security firms to trace and recover the stolen assets. The team has not ruled out additional response measures if full recovery is not achieved. The exploit resulted in the loss of approximately $8.5 million in assets from the vaults.