The DeFi lending and borrowing protocol Term Finance on Ethereum was hit by an attack exploiting a weakness in its DAO governance system, draining approximately $8.5 million. The attacker funded the operation with 2 ETH sourced via Tornado Cash, then acquired enough governance tokens to gain majority voting power and approve malicious proposals, taking control of the vaults holding user assets. A total of 2,843 ETH worth $6.87 million alongside 1.68 million USDC were compromised, then swapped for roughly 1.68 million DAI. According to a Blockaid security report, in H1 2026, crypto theft and fraud losses exceeded $1 billion, with Ethereum accounting for the largest share at $332 million. The price of ETH has declined by 48.9% over the past year, falling from around $4,000 in mid-January to $2,412.
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