$450,000 USDT Drained from Garden Finance HTLCs in Ongoing Exploit

Garden Finance, a cross-chain bridge and atomic swap protocol, temporarily took its app offline after an attacker drained about $450,000 in USDT from its hash time-locked contracts (HTLCs) on multiple networks.

According to Blockaid, the attack occurred on Sunday, and the exploit is ongoing. The affected networks include Ethereum, Base, Arbitrum, and BNB Smart Chain.

Garden Finance spokesperson clarified that neither the protocol nor its HTLC smart contracts were compromised, but an independent solver's off-chain database was breached.

The attacker inserted fraudulent transaction records into the solver's database, causing it to release funds for swaps that had not been funded by the counterparty. The company assures that no user funds were lost or placed at risk and that only solver-owned assets were affected.

Garden Finance is working with security firms zeroShadow, Quantstamp, and Blockaid to trace and recover the stolen funds.