Term Labs Confirms Fixed-Rate Loan Positions in Affected Vaults Have Been Restored

ChainCatcher report: Term Labs has released a technical report on the security incident, confirming that all fixed-rate loan positions in the affected vaults were restored on August 25. The incident was limited to the liquid balances within the Term vault; Term V1 and V2 contracts were not compromised, and the direct lending market remains open. Attack timeline: Between August 17 and 18, the attacker funded their operation wallet via Tornado Cash and submitted a malicious proposal disguised as a governance proposal, setting the governance delay parameter to zero and removing the LP window that blocked changes. On August 23, the attacker executed two batches of attacks, extracting assets from the ETH and USDC strategies and transferring them to their own wallet. Term Labs stated that it has collaborated with law enforcement agencies; the affected meta-vaults and strategies have been shut down, and the contracts have been upgraded and migrated prior to expiration.