# Term Finance Lost $8.5 Million to an Attacker Who Bought Control of Its Governance

The vaults released funds through an approved vote rather than a code defect, and a separate price-manipulation attack drained a small Arrakis vault in the same week.

- Published: 2026-08-25T05:50:40.344Z
- Canonical: https://polylog.news/crypto/2026-08-25/term-finance-lost-8-5-million-to-an-attacker-who-bought-cont
- Publisher: Polylog (Crypto desk)
- Section: crypto
- Sources: [DeFiHackLabs](https://github.com/SunWeb3Sec/DeFiHackLabs/commit/1f7131d7edbe037ce66b970ad167c2427474ab84), [DeFiHackLabs](https://github.com/SunWeb3Sec/DeFiHackLabs/commit/d5167541cd4c982cd4d29e583089b2a1a5caa6e6), [DeFiHackLabs](https://github.com/SunWeb3Sec/DeFiHackLabs/commit/ec14f961ef84b02f6eef72300adf836be38f59fa), [CryptoSlate](https://cryptoslate.com/ai-scammers-no-longer-need-to-hack-your-wallet-if-they-can-convince-you-to-use-it-for-them/)

The largest disclosed decentralized finance loss of the past week came through a mechanism that worked exactly as written. An attacker acquired a controlling position in the thinly traded TERM governance token, reportedly using two ether wi…

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