Garden Finance Loses $450k USDT to HTLC Exploit, Shuts App Down

Garden Finance suffered a loss of approximately $450,000 USDT from its HTLC contracts across four blockchains after an exploit reported by Blockaid.

The Mechanics of the Exploit

■Blockaid confirmed that an attacker siphoned $450,000 USDT from Garden’s HTLC contracts on Ethereum, Base, Arbitrum, and BNB Smart Chain.

■The incident was ongoing at the time of the alert, with the specific vulnerability undisclosed.

■Addresses linked to the attacker and the affected contracts were released.

Garden Finance’s Response

■The platform was temporarily taken offline.

■The firm noted “unusual activity” and is conducting a full investigation.

■Whether user funds were affected remains unclear.

Prior Security Breach

■In October 2025, an attacker stole $11.4M by compromising one of Garden’s solvers.

■That breach did not impact protocol contracts or user funds.

Market Reaction

■The incident heightened volatility in crypto markets.

■Similar protocols faced increased security concerns.

■Investors re‑examined HTLC‑based protocols.

The weakness in Garden Finance’s HTLC protocol underscores the critical importance of cross‑chain bridge security. In the aftermath, proactive security measures and multi‑layer audits are paramount. Investors should scrutinize attack traces and code reviews when evaluating projects with comparable risk profiles.