Term Finance, an Ethereum-based fixed-rate lending platform, has successfully recouped $1 million of the $1.6 million lost due to a misconfigured oracle that caused erroneous liquidations in its Treehouse (tETH) market.
In an announcement shared on X, the platform outlined its recovery efforts, revealing that they managed to internally recover 223.197 ETH, valued at approximately $400,000. Additionally, negotiations led to the recovery of another 333 ETH, equating to around $600,000.
This brings the remaining loss down to 362.03 ETH, which is about $650,000 — a notable decrease from the initial loss of 918 ETH.
Clarification on Oracle Incident: Term Finance Denies a Hack
Responding to concerns from security analysts, Term Finance has clarified that the recent incident was caused by a bug in an updated ETH oracle, rather than a security breach. The team emphasized, “No smart contracts were exploited, and user funds were not directly targeted.”
Details surrounding the negotiations that led to the return of the funds have not been disclosed, and Term Finance has yet to provide additional commentary.
We are updating our community on the ongoing recovery efforts following yesterday’s oracle issue:
The current outstanding loss is now 362.03 ETH (~$650K) — a significant reduction from the initial impact of 918 ETH.
From the original loss:
223.197 ETH was recaptured internally,
333 ETH was successfully…
— Term Labs (@term_labs) April 27, 2025
This oracle incident exemplifies the increasing vulnerabilities present within the decentralized finance (DeFi) sector.
Just days prior, Centralized finance platform Loopscale, built on Solana, encountered a $5.8 million exploit, while crypto exchange Bitget reported a $20 million loss that stemmed from coordinated manipulations of a lesser-known token market.
Bitget has since initiated legal actions against eight accounts believed to be linked to this manipulative incident.
Moreover, Impermax Finance recently fell prey to a flash loan attack over the weekend, racking up losses exceeding $150,000, as reported by the security firm TenArmor.
The protocol confirmed the breach and pledged to conduct a detailed post-mortem once investigations have been completed.
Recovery rates for such breaches have been inconsistent across the cryptocurrency industry.
Bybit’s CEO, Ben Zhou, revealed that following a $1.4 billion hack in February, approximately 28% of the stolen assets have become untraceable after being laundered through mixers and peer-to-peer platforms, with only a small fraction (3.84%) successfully frozen.
Crypto Sector Suffered $1.6 Billion in Hacks in Q1
The cryptocurrency industry experienced staggering losses amounting to $1,635,933,800 through 39 incidents within the first quarter of 2025, according to blockchain security platform Immunefi.
The report characterized “Q1 2025 as the worst quarter for hacks in the history of the crypto ecosystem.”
A significant portion of these losses resulted from just two incidents involving centralized exchanges: Phemex faced a loss of $69.1 million in January, while Bybit lost an astounding $1.46 billion in February.
The total losses recorded in the first quarter represent a dramatic 4.7-fold increase compared to the same period in 2024, when hackers and fraudsters made off with $348,251,217.
Experts point to the notorious Lazarus Group from North Korea as the likely perpetrator behind the two largest attacks, attributed with stealing $1.52 billion — which accounts for 94% of the total losses.
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