Term Finance recovers $1 million of $1.6 million loss to oracle configuration error

Term Finance, an Ethereum-based fixed-rate lending market, said it recovered $1 million of the $1.6 million in funds lost when a misconfigured oracle led to faulty liquidations in its Treehouse (tETH) market. 

"Of the original loss: 223.197 ETH [~$400,000] was captured internally, 333 ETH [~$600,000] was successfully negotiated for return," the Term team said on X . "The total outstanding loss is now 362.03 ETH (~$650K) — significantly reduced from the original 918 ETH impact."

Though the original liquidations sparked concerns from security analysts, Term said a bug with an updated ETH oracle was to blame for the $1.6 error. "This was not a hack. No smart contracts were exploited, and user funds were not directly targeted," Term said . It is unclear what form the negotiations for the return of funds took; Term could not immediately be reached for comment from The Block. 

The oracle error joins an array of recent DeFi hacks, bugs, and exploits, including a $5.8 million exploit of Solana DeFi platform Loopscale. Crypto exchange Bitget, which said it lost $20 million after an organized group exploited a market for a little-known crypto token last Sunday, said it would legally pursue the eight accounts it believes to be responsible. 

Impermax hack adds to weekend attacks

Another protocol was also attacked on Saturday: Impermax Finance, leading to a loss of over $150,000, according to security firm TenArmor . 

"Less than one hour ago, someone executed a flash loan and drained our V3 pools," Impermax said on X . "We are very sorry for that. We will provide a post-mortem when the full verification is done."

Recoveries from crypto hacks vary widely. Ben Zhou, the CEO of Bybit, which lost over $1.4 billion on Feb. 21 as a result of the crypto industry's largest attack so far, recently said nearly 28% of the hacked funds had "gone dark," making them untraceable on the blockchain, after launderers moved funds between mixers, peer-to-peer protocols, and over-the-counter markets. Only 3.84% of the funds have been frozen.