DeFi Loan Agreement Term Labs confirmed that a governance attack on the Trem Finance vault under the flag resulted in the transfer of approximately $8.5 million of assets. This loss, which represents a significant proportion of the current lock-in of the agreement, has given renewed attention to security risks in the chain of recent and sustained warming.

Assets transferred include ETH and Stable Currency

The chain data show that 2843 ETHs were transferred by the attackers, valued at approximately $6.87 million at the time of the incident, and that 1.68 million USDCs were displaced together. Subsequently, this part of USDC was converted to approximately 1.68 million DAIs.

Term Labs stated that the agreement vault had indeed been affected by the governance attack and that more details would be made available upon completion of the investigation. So far, the project has not indicated which governance authority the attackers have specifically used or which loophole led to the transfer of funds.

The attack address started with funds from Tornado Cash.

According to block chain security researchers, the site of the attack was the first to receive a 2 ETH transfer from Tornado Cash. The clue itself is not sufficient to identify the assailant, but the monetized instruments are often used to reduce the traceability of funding sources before and after the attack.

Term Finance provides fixed-interest lending services mainly through chain auctions. DefiLlama data indicate that the total value of the agreement is currently approximately $12.26 million, of which approximately $8.64 million is deployed on the Etherak network.

Financial losses close to the current liquidity of the agreement

In terms of the size of the existing locking of the agreement, the amount of funds lost was not too low. Governance attacks are not common when compared to private key leaks or cross-bridge attacks, but once successful, the attackers may directly use the original control of the agreement to complete the transfer of assets.

DeFi security incidents have continued to increase recently. In July, it was reported that the encryption industry had lost approximately $247.4 million as a result of various attacks, more than three times as much as in June, of which Coldcard had about $116 million in related incidents. After entering August, the Coreum-XRPL cross-chain breach resulted in the transfer of nearly 200,000 XRPs and Coinsbuy lost approximately $7.9 million in another attack.

Additional information:The report mentions larger historical cases within the industry, including the theft of about $1.5 billion by Bybit in 2025 and the loss of about $615 million by Ronin Network.