Garden Finance App Goes Offline After Independent Solver Database Compromise

Garden Finance temporarily took its app offline after an attacker compromised the off-chain database of one of its independent solvers, leading to the loss of solver-owned digital assets while leaving protocol contracts and user funds unaffected.

The incident occurred when an attacker gained access to the solver's database and inserted fraudulent transaction records that triggered releases of funds for swaps that had never been funded by the corresponding counterparty.

Garden Finance said its smart contracts and user funds were not affected because the attack was limited to one solver's infrastructure, and only assets owned by the affected solver were involved.

The protocol has engaged blockchain security firms zeroShadow, Quantstamp, and Blockaid to trace the stolen assets and support recovery efforts. While the company estimates that around $450,000 in USDT was drained from HTLC contracts across multiple blockchains before the incident was contained, it is still verifying the total amount lost.