Term Labs has permanently closed all Term Meta Vaults following a governance attack, and it has revoked the DAO's governance rights while allowing withdrawal channels to stay open. The closure is described as irreversible and blocks any new deposits, with the team not disclosing the remaining assets in the vaults and indicating it will explore methods to address any shortfall.

Blockchain security firm PeckShield estimates attackers took about 2,843 ETH and 1.68 million USDC, for total losses around $8.5 million. On-chain activity shows transfers tied to addresses labeled by Etherscan as "Term Finance Exploiter 1" and "Term Finance Exploiter 2."

Yearn noted that Term's vault contracts run on its V3 architecture, but the attack targeted Term's custom governance wrapper and did not impact standard Yearn vaults. Term stated its underlying protocol and direct lending markets were unaffected and said it is working with external security teams on remediation and recovery, without offering a compensation timeline or guarantee.