Term Finance shuts all vaults after hack, keeps withdrawals open

Ethereum-based fixed-rate lending market Term Finance said it has shut down all Term Meta Vaults and revoked DAO governance authority following a recent hack. In a post on X, the project said the closed vaults cannot be restarted, new deposits have been permanently halted, and withdrawals remain available. Based on the investigation so far, the incident appears to have been limited to Term vault governance and has not affected the protocol or the lending market, it said. The team added it is working on recovery efforts with external security firms and will consider additional response measures if it cannot recover the full amount of losses. About $8.5 million in assets was previously stolen from Term Finance vaults in an exploit.