Key TakeawaysGarden Finance pulled its application offline following a security compromise affecting a solver’s off-chain databaseApproximately $450,000 in USDT was stolen from networks including Ethereum, Base, Arbitrum and BNB ChainThe protocol’s HTLC smart contracts remain intact and user deposits were not impactedThe losses affected only the compromised solver’s own assets, not customer holdingsThree security firms—zeroShadow, Quantstamp and Blockaid—are assisting with fund recovery effortsOn July 27, Garden Finance suspended operations of its cross-chain bridging platform following a security incident targeting one of its third-party solvers.UPDATE: Garden Finance has shut down its app as a precaution, confirming that no user funds or smart contracts were affected. https://t.co/aFdBh4PWRV— Coin Bureau (@coinbureau) July 27, 2026According to the platform’s disclosure, an unauthorized party gained access to a solver’s off-chain database infrastructure. Once inside, the attacker manipulated transaction records by creating fraudulent entries that deceived the solver into releasing funds for swaps that were never legitimately initiated.Security analytics firm Blockaid confirmed the exploit resulted in losses totaling approximately $450,000 in USDT tokens. The attack spanned multiple blockchain networks, including Ethereum, Base, Arbitrum and BNB Chain.Garden Finance emphasized that the underlying protocol architecture and its hash time-locked contracts (HTLCs) remained completely secure throughout the incident. These HTLC mechanisms serve as the foundation for Garden’s atomic swap functionality, enabling trustless exchanges between Bitcoin and other blockchain ecosystems.Importantly, the platform stressed that customer assets were never exposed or compromised during the breach. All financial losses stemmed exclusively from the affected solver’s proprietary funds.As a protective measure, Garden Finance temporarily disabled all services while conducting a comprehensive security audit of the impacted systems. The company has not yet announced when normal operations will resume.Recovery Efforts Underway With Security PartnersGarden Finance has enlisted three specialized blockchain security companies to investigate the breach and attempt asset recovery. The investigation team consists of zeroShadow, Quantstamp and Blockaid.The platform stated that service restoration will occur only after thorough security validation procedures are complete. Garden also referenced its SOC 2 Type II certification as demonstration of its commitment to security standards.Pattern Emerges With Second Solver CompromiseThis incident marks the second time in less than a year that Garden Finance has experienced a solver-related security breach. Previously, in October 2025, a comparable attack resulted in approximately $11.4 million in stolen funds when an attacker infiltrated a solver’s operational environment.Garden emphasized that the October incident similarly left protocol contracts and user balances untouched.The pattern of repeated solver breaches points to persistent security weaknesses in off-chain solver operations rather than fundamental flaws in Garden’s core protocol design.Garden Finance continues to assess the complete scope of damages, including finalizing the exact loss amount, identifying all affected digital assets and confirming every blockchain network involved.Blockaid initially detected and publicly disclosed the ongoing exploit, publishing blockchain addresses associated with the attacker’s operations.Garden Finance stated its current priorities include hardening affected infrastructure, tracking the movement of stolen assets and implementing additional safeguards before reopening the platform.The platform has not disclosed whether any portion of the $450,000 has been successfully recovered to date.The post Garden Finance Halts Operations Following $450K Solver Database Exploit appeared first on Blockonomi.