Web3 security firm Blockaid detected an active exploit targeting Garden Finance's smart contracts, draining approximately $450,000 in USDT across four EVM-compatible blockchains. The attack affected contracts on Ethereum, Base, Arbitrum, and BNB Chain, and remained ongoing at the time of detection. The exploit targets Hash Time Locked Contracts (HTLCs) used for cross-chain atomic swaps, allowing the attacker to drain USDT directly from these contracts across multiple chains simultaneously. Garden Finance previously lost an estimated $10.8 million to $11 million in a separate breach late last year attributed to a compromised solver, raising questions about the protocol's security infrastructure across different attack vectors.
Blockaid Identifies HTLC Contract Vulnerability Across Four Chains
Garden Finance uses Hash Time Locked Contracts (HTLCs) to facilitate cross-chain atomic swaps. HTLCs function as digital escrow mechanisms with countdown timers: two parties lock assets on different chains, and the swap completes only if both sides fulfill the conditions before time expires. Blockaid identified that the attacker drained USDT directly from these HTLC contracts across multiple chains simultaneously. The multi-chain nature of the exploit suggests a vulnerability in the contract logic itself or in how it was deployed across different networks, rather than a simple one-off bug on a single deployment. The $450,000 figure is notably smaller than the late 2025 incident.
Garden Finance Records Second Major Security Incident
The earlier attack, attributed to a compromised solver, resulted in losses between $10.8 million and $11 million. Garden Finance claimed at the time that user funds were unaffected by that breach. The late 2025 breach was traced to a compromised solver rather than a smart contract vulnerability. This latest exploit appears to target the contracts themselves, meaning Garden Finance has experienced fundamentally different types of attacks on different layers of its infrastructure. The protocol operates across Ethereum, Solana, Base, Arbitrum, and BNB Chain, with a core value proposition of enabling fast cross-chain swaps, particularly between Bitcoin and USDT.
Protocol Undergoes Audits by Three Security Firms
Garden Finance has undergone audits by Trail of Bits, OtterSec, and Zellic, three of the most respected security firms in the crypto space. Blockaid flagged this as an ongoing attack, meaning the vulnerability may have been actively exploitable at the time of detection. Garden Finance now carries the weight of two significant security incidents in under a year. The first cost roughly $11 million, while this one appears smaller at $450,000.
FAQ
What is the current status of the Garden Finance exploit?
Blockaid detected an active exploit draining approximately $450,000 in USDT from Garden Finance's HTLC smart contracts across Ethereum, Base, Arbitrum, and BNB Chain. The attack was ongoing at the time of detection.
How does the current exploit differ from Garden Finance's previous security breach?
The late 2025 breach, which resulted in losses between $10.8 million and $11 million, was attributed to a compromised solver. This latest exploit targets the HTLC smart contracts themselves, representing a different type of attack on a different layer of the protocol's infrastructure.
Which security firms have audited Garden Finance?
Garden Finance has undergone audits by Trail of Bits, OtterSec, and Zellic.
