Term Labs DAO was hit by a governance attack in which an attacker gained controlling voting power in the DAO’s governance token for $951 and then used a malicious proposal to drain $8.5 million from the strategy treasury, according to Techub, citing Crypto.news. The report says the incident shows that governance-level vulnerabilities remain unresolved across much of DeFi. Rather than exploiting a smart contract bug in the usual sense, the attacker appears to have taken control through token accumulation and pushed through a proposal that enabled the withdrawal. The case adds to ongoing concerns around DAO governance design, especially in protocols where voting control can be acquired cheaply and then used to move treasury assets.
Term Labs DAO has suffered a governance attack after an attacker acquired controlling power over the DAO’s governance token for $951 and then used a malicious proposal to drain $8.5 million from the strategy treasury, according to Techub, citing Crypto.news.
The report says the incident exposed a governance risk that many DeFi protocols still have not fixed.
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