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Garden Finance pauses app after $450,000 exploit hits swap contracts

Blockaid said an attacker drained about $450,000 in USDT from Garden hash time-locked contracts across Ethereum, Base, Arbitrum, and BNB Smart Chain, while Garden said only solver-owned assets were affected.

Reported · Written up by our desk · Market Structure

Garden Finance temporarily disabled its app after Blockaid reported an exploit involving Garden hash time-locked contracts used for atomic swaps. Blockaid said the attacker drained about $450,000 in USDT from Garden’s HTLCs on Ethereum, Base, Arbitrum, and BNB Smart Chain.

Garden said neither its protocol nor its HTLC smart contracts were compromised. Instead, the company said the attacker breached the off-chain database of an independent solver and inserted fraudulent swap records, which led the solver to release funds for swaps that had not been funded by the counterparty.

Garden added that no user funds or smart contracts were affected, and it said the incident was isolated to solver-owned assets. Services were paused as a precaution while the affected infrastructure was isolated and reviewed, with Garden working with zeroShadow, Quantstamp, and Blockaid to trace and recover the funds.

Garden expects to restore services shortly, but it did not provide a specific timeline pending security checks. The company also said it is still confirming the total amount, assets, and networks involved, and pointed to its recent SOC 2 Type II attestation as evidence of its security investment.

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