Garden Finance Temporarily Halts Operations After $450,000 Exploit
Vexoda Newsroom
Blockchain security firm Blockaid reported an exploit that drained approximately $450,000 in USDT from Garden Finance’s HTLC contracts across multiple blockchain networks. The platform has since disab
Garden Finance recently had to temporarily disable its application after reports of a significant security breach by Blockaid. According to the report, an attacker managed to drain around $450,000 in USDT from HTLC (Hash Time-Locked Contracts) across Ethereum, Base, Arbitrum, and BNB Smart Chain networks.
HTLCs are used by Garden Finance for facilitating atomic swaps between Bitcoin and other assets on different blockchain networks. The security firm's alert did not specify the exact vulnerability exploited but included addresses associated with both the attacker and affected contracts.
In response to this incident, Garden Finance stated that it had detected unusual activity and was conducting a full investigation while keeping its app offline. This move came after an earlier breach in October 2025 where attackers stole approximately $11.4 million by compromising one of Garden’s solvers, but did not affect the protocol contracts or user funds.
The incident highlights ongoing security challenges within blockchain protocols and cross-chain operations. Such exploits can have significant implications for users' trust and could lead to stricter regulatory oversight in the sector.
Traders should monitor developments closely as this event underscores the importance of robust security measures across all layers of DeFi platforms. Additionally, it may prompt further discussions on decentralized finance (DeFi) security standards and best practices within the broader cryptocurrency community.
Source: Cointelegraph. Summarized and rewritten by the Vexoda Newsroom. This is market news, not financial advice.