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Blockaid Reports $450,000 Exploit as Garden Finance Disables App

Blockaid Reports $450,000 Exploit as Garden Finance Disables App

Cross-chain protocol pauses services after compromise of an external solver's infrastructure.

Written by Rahul Dhingra, Edited by Rohan Pal | Updated: 27 July 2026 19:21 IST

Blockaid Reports $450,000 Exploit as Garden Finance Disables App

Photo Credit: Unsplash/Ewan Kennedy

Security teams investigate exploit involving Garden Finance's off-chain infrastructure

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Highlights

Protocol says customer funds remained unaffected by the exploit
Attackers abused compromised solver infrastructure to drain USDT
Garden is working with security firms to recover stolen assets

According to Garden Finance, an outside solver hacked into the off-chain database. This attack prompted the cross-chain bridge and atomic swap protocol to take their application offline. Blockaid claimed that hackers withdrew $450,000 (roughly Rs. 4.3 crore) in USDT via Garden's hash time-locked contract (HTLC) on Ethereum, Base, Arbitrum, and BNB Smart Chain. HTLC contracts are timed escrow contracts used by Garden to carry out atomic swapping between Bitcoin and assets on other blockchains. Blockaid reported the attack as ongoing and listed the addresses of the attacker and the exploited contracts.

External Solver Breach Triggers Service Suspension and Recovery Efforts

According to Garden, there was no loss of users' money or putting money at any risk, and the problem only impacted the solvers' property. The company is now in the process of determining the total amount of money as well as assets and networks impacted. It said services were paused as a precaution while the affected infrastructure was isolated and reviewed.

Cryptocurrency Discussion

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:rotating_light: Blockaid detected an ongoing exploit on @gardenfi HTLC.

~$450k USDT drained so far on Eth, Base, Arb and BSC.

More details in :thread:
— Blockaid (@blockaid_) July 26, 2026

The attackers were able to hack into the off-chain database of an independent solver and plant false transactions. The result was that the solver released the funds even though no money had been deposited by the counterparty. Garden explained that they are working with zeroShadow, Quantstamp, and Blockaid in tracking and recovering the funds. The protocol plans to restore its services soon, pending the completion of security reviews, but provided no timeline for this.

The firm also highlighted the SOC 2 Type II attestation that it had recently undertaken as proof of its security investment. This follows an October 2025 hack attack where the hacker managed to steal nearly $11.4 million (roughly Rs. 109 crore) after gaining access to the operating system environment of one of the Garden's solvers. According to the firm, this attack did not compromise its protocol contracts.

BitMart to Wind Down Exchange, End Trading by August 26

Earlier this month, Blockaid had reported another incident that involved two crypto bridges managed by decentralised perpetual exchange AFX and Verus Protocol. The incident led to a loss of more than $31.6 million (roughly Rs. 305 crore) through two separate hacks carried out within a period of just hours. The decentralised perpetual exchange AFX, which operates on Arbitrum, has lost $24.15 million (roughly Rs. 233 crore), whereas the attack on the Verus Ethereum Bridge cost approximately $7.5 million (roughly Rs. 72.3 crore) worth of cryptocurrency.

Cryptocurrency is an unregulated digital currency, not a legal tender and subject to market risks. The information provided in the article is not intended to be and does not constitute financial advice, trading advice or any other advice or recommendation of any sort offered or endorsed by NDTV. NDTV shall not be responsible for any loss arising from any investment based on any perceived recommendation, forecast or any other information contained in the article.

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Rahul Dhingra

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Rahul Dhingra is a crypto writer at Gadgets 360, where he covers the exciting world of Cryptocurrency, Blockchain, Defi and Web3. Before joining Gadgets 360, he worked as a content specialist for a European-based Crypto Exchange. Rahul loves storytelling, not just through the written word but also through the visual medium. Beyond his professional life, Rahul is a sports fanatic. Whether it’s cricket or football, his passion for the game is contagious. More