Garden Finance Drained of $5.5 Million in Multi-Chain Exploit as Attacker Converts Stolen Assets

Cross-chain yield protocol Garden Finance fell victim to a devastating multi-chain exploit on October 30, 2025, with losses exceeding $5.5 million as attackers systematically drained funds across several blockchain networks. The breach, first flagged by on-chain investigator ZachXBT, highlights the persistent vulnerabilities plaguing cross-chain bridge infrastructure in decentralized finance.

Bitcoin was trading at approximately $108,305 at the time of the attack, while Ethereum hovered near $3,804, according to CoinMarketCap data. The broader crypto market capitalization stood at roughly $3.81 trillion, reflecting a market already under pressure from the Federal Reserve’s latest rate decision earlier that day.

The Exploit Mechanics

The attack targeted Garden Finance’s cross-chain infrastructure, exploiting vulnerabilities in the protocol’s multi-chain bridging mechanisms. The primary theft addresses identified include 0x98BCc6c34A489CEfdD9DfA8d792CFEFb02Ea2D12 on Ethereum and WZy4xxpqktWa1b6MPMRiWsD487CT8mDcapB6GufBJCH on Solana, both now flagged for suspicious activity by blockchain monitoring services.

According to blockchain security firm PeckShield, which confirmed the ongoing movements of compromised assets, the attacker moved swiftly to convert all freezeable tokens into non-freezable alternatives. The stolen assets were rapidly swapped into Ether (ETH), a common laundering technique that takes advantage of Ethereum’s liquid markets and the availability of mixing services like Tornado Cash.

ZachXBT’s analysis suggests the total exposure could potentially exceed $10.8 million, affecting multiple networks simultaneously. The investigation also revealed a troubling detail: more than 25 percent of Garden Finance’s historical transaction activity was connected to previously stolen assets, with links traced back to earlier incidents tied to the Bybit and Swissborg exploits.

Affected Systems

The exploit impacted Garden Finance users across multiple blockchain networks. The cross-chain yield protocol, which allows users to earn returns by providing liquidity across different chains, saw its native SEED token plummet by 64 percent in the hours following the attack disclosure as panic selling swept through holders.

The multi-chain nature of the attack amplified the damage considerably. Unlike single-chain exploits that can be contained by pausing a single smart contract, the Garden Finance breach required coordination across multiple networks, each with its own consensus mechanisms and security assumptions. This cross-chain complexity fundamentally works in the attacker’s favor, as response teams must address vulnerabilities on several fronts simultaneously.

The DPRK-linked threat group known as “Dangerous Password” is suspected to be behind the hack, according to initial assessments. This aligns with a broader pattern of state-sponsored cryptocurrency theft that has plagued the industry throughout 2025.

The Mitigation Strategy

In the immediate aftermath of the attack, Garden Finance took the unusual step of sending an on-chain message to the attacker offering a 10 percent white-hat bounty in exchange for the return of the stolen funds. This approach, while increasingly common in DeFi exploits, has a mixed track record of success. The protocol has not yet issued a formal public statement addressing the breach.

Security researchers recommend that users who interacted with Garden Finance across any chain immediately revoke all token approvals and smart contract permissions. Wallet holders should monitor their addresses for any unauthorized transactions and consider moving remaining funds to fresh wallets that have no connection to the compromised protocol.

Lessons Learned

The Garden Finance exploit underscores several critical security lessons for the DeFi ecosystem. First, cross-chain bridges remain among the most vulnerable components in decentralized finance, with attack surfaces that multiply with each additional chain supported. Second, protocols with connections to previously compromised funds face elevated risk, as their infrastructure may already be compromised or under surveillance by sophisticated threat actors. Third, the speed with which attackers convert stolen assets into liquid, non-freezable tokens demonstrates the importance of real-time monitoring and rapid response capabilities.

The incident follows several other major DeFi breaches in October 2025, including the Coinbase hack where attackers stole over $300 million. Both incidents illustrate persistent vulnerabilities in cross-chain systems and the growing need for stronger security and verification standards across decentralized networks.

User Action Required

If you have interacted with Garden Finance at any point, take these immediate steps: revoke all spending approvals connected to Garden Finance contracts on every chain you used. Monitor your wallets for unusual activity. Do not interact with any Garden Finance contracts until the team issues a comprehensive post-mortem and security audit. Consider reporting any losses to relevant authorities and blockchain forensics firms tracking the attack. Stay informed through official channels and trusted security researchers for updates on fund recovery efforts.

Disclaimer: This article is for informational purposes only and does not constitute financial or investment advice. Always conduct your own research before interacting with any DeFi protocol.