Term Finance has announced the permanent shutdown of its Meta Vaults following a hack that drained nearly all Ethereum deposits. According to reports, the losses are estimated at around $8.5 million.

Meta Vaults Exploit

The attack was the result of an exploit in the vault governance system. Hackers gained access to user funds, leading to an almost total loss of Ethereum held in Meta Vaults.

Term Finance's Response

Once the attack was discovered, the Term Finance team decided to immediately and permanently close Meta Vaults. This move was aimed at stopping any further losses and protecting whatever funds remained.

Impact on Users

Losses are pegged at $8.5 million. So far, Term Finance hasn't announced any plans for compensation or for bringing Meta Vaults back online.