# Governance Capture and Token Accounting Bugs Drive the Week's Smaller On-Chain Losses

Term Labs lost about $8.5 million to an attacker who bought voting power, while researchers published reproductions of a sell-tax accounting bug and an unprotected contract reinitialization.

- Published: 2026-08-28T05:39:41.604Z
- Canonical: https://polylog.news/crypto/2026-08-28/governance-capture-and-token-accounting-bugs-drive-the-week
- Publisher: Polylog (Crypto desk)
- Section: crypto
- Sources: [Rekt News](https://www.rekt.news/), [DeFiHackLabs (FHToken)](https://github.com/SunWeb3Sec/DeFiHackLabs/commit/6114428e0c2616732397f1a6a5228e62ffb2bef7), [DeFiHackLabs (Enjin registry)](https://github.com/SunWeb3Sec/DeFiHackLabs/commit/812736040d22e31cf399d84e7bee2e9bcaca72d3), [DeFiHackLabs (incident count)](https://github.com/SunWeb3Sec/DeFiHackLabs/commit/9ecac27cca0d52e23da80c2804f7b9912b352cbb)

The lending protocol Term Labs lost roughly $8.5 million on August 23 in an attack that required no bug at all. The attacker accumulated enough voting power to control four USD Coin strategy vaults and about 91 percent of the protocol's eth…

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