Decentralized finance protocol Garden Finance has temporarily taken its application offline following a security exploit. Blockchain security firm Blockaid reported that an attacker drained approximately $450,000 in USDT from the protocol's cross-chain contracts.
The exploit highlights ongoing security risks within the decentralized finance sector, potentially impacting user trust and the stability of cross-chain protocols.
Garden Finance has temporarily taken its application offline after blockchain security firm Blockaid reported an exploit that drained approximately $450,000 in USDT. The attacker targeted the protocol's hash time-locked contracts (HTLC) across four blockchain networks: Ethereum, Base, Arbitrum, and BNB Smart Chain.
Blockaid stated that the exploit was ongoing when they published their alert, but did not specify the vulnerability or confirm if user funds were impacted. The security firm provided addresses associated with the attacker and the affected contracts. Garden Finance confirmed detecting "unusual activity" and initiated a full investigation.
This incident is separate from a breach in October 2025, where an attacker stole $11.4 million by compromising the operating environment of one of Garden's solvers. At that time, Garden stated that the protocol contracts and user funds were not affected.