Fixed-rate lending positions fully restored, Term Labs states the incident did not affect Term V1/V2 contracts

Odaily News, according to Term Labs monitoring, the final restoration operation was completed at 14:52 UTC on August 25. Currently, Term Labs believes the impact of the incident is limited to liquid assets held by Term Vault, while Meta Vault and related strategies remain closed. The team has not yet found any evidence that Term V1 and V2 contracts were attacked during the incident, with direct lending markets unaffected and supply, repayment, and liquidation functions operating normally. Technical analysis shows that the attacker funded operational wallets through Tornado Cash and exploited governance proposals to reset the governance delay for multiple strategies to zero, bypassing the additional LP blocking window. They subsequently deployed fake controllers, price adapters, and counterfeit Repo tokens, draining liquid assets from certain ETH and USDC strategies by manipulating strategy parameters and price mechanisms. Term Labs is cooperating with law enforcement agencies and cybersecurity companies to investigate the attacker's identity and has provided relevant information to authorities. The remaining low-activity Vaults are currently being processed. Previously unaffected fixed-rate lending contracts were upgraded and migrated in advance to avoid the risk of redemptions to affected Vaults upon loan maturity.