Background: Term Finance is a fixed-rate lending market based on Ethereum. Recently, due to a misconfiguration of the Ethereum oracle, its Treehouse (tETH) market experienced erroneous liquidations, resulting in a loss of 1.60 million USD.

Main Events: Term Finance has successfully recovered 1.00 million USD of the loss, with 223.197 ETH (approximately 400 thousand USD) retrieved internally and 333 ETH (approximately 600 thousand USD) recovered through negotiations. The remaining loss stands at 362.03 ETH (approximately 650 thousand USD), significantly reduced from the initial 918 ETH loss. Term Finance emphasized that this incident was not a hacker attack, the smart contracts were not exploited, and users' funds were not directly targeted. Meanwhile, other DeFi platforms such as Solana's Loopscale and Impermax Finance also suffered security incidents, losing over 5.80 million USD and 150 thousand USD respectively.

Potential Impact: This incident highlights the risks of oracle and security vulnerabilities in the DeFi sector, reminding the industry to strengthen security measures and risk management. Crypto exchange Bitget also stated it will take legal actions against the responsible accounts involved. Bybit CEO Ben Zhou pointed out that some of the stolen funds have been laundered through various means, making recovery difficult.

Special Note: SoSoValue mentioned in the content did not appear.

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.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.

Term Finance recovers $1 million loss due to oracle misconfiguration, drawing attention to DeFi security risks