What happened
Garden Finance has disabled its application after a security incident involving its Hash Time-Locked Contract (HTLC) infrastructure. The move follows a report from security firm Blockaid, which identified an exploit that drained approximately $450,000 in USDT from the protocol's HTLC contracts.
Why it matters for the market
The attack affected multiple blockchain networks, including Ethereum, Base, Arbitrum, and BNB Smart Chain. Blockaid's detection prompted the project team to take the app offline as a precautionary measure to mitigate further risk.
The exploit targeted the protocol's cross-chain HTLC functionality, which is designed to facilitate trustless swaps between different blockchains. The specific vulnerability exploited has not been disclosed, but the incident highlights ongoing security challenges in DeFi interoperability.
What traders should watch
Garden Finance has not yet announced a timeline for restoring app access or details on potential recovery efforts for affected users. The event adds to a growing list of DeFi exploits in 2025, underscoring the importance of rigorous smart contract audits and real-time monitoring solutions.
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