Garden Finance Loses $5.5M in Multichain DeFi Hack: North Korean Group Suspected
- What Happened in the Garden Finance Hack?
- Who’s Behind the Attack?
- SEED Token Crashes 64%
- Garden’s Troubled History
- What’s Next for Garden Finance?
- FAQ: Garden Finance Hack Explained
Garden Finance, a decentralized finance (DeFi) protocol, suffered a $5.5 million exploit across multiple blockchains, with losses potentially exceeding $10 million. On-chain researcher ZachXBT first flagged the unauthorized withdrawals, linking the attack to the North Korean hacking group "Dangerous Password." The platform's native token, SEED, plummeted 64% amid the chaos. Here’s a DEEP dive into what happened, the aftermath, and why this hack stands out in DeFi’s turbulent history.
What Happened in the Garden Finance Hack?
On October 30, 2025, Garden Finance was drained of $5.5 million in a cross-chain exploit targeting assets on Arbitrum, Solana, and other networks. The attacker used MetaMask and rapid routing solutions to swap stolen funds—including WBTC, wrapped ETH, and SEED tokens—into liquid assets. Cyvers Alert later estimated total losses at $6 million, while some analysts suggested figures as high as $11 million pending confirmation. The hack followed a pattern of North Korean groups targeting smaller protocols for quick cash-outs.
Who’s Behind the Attack?
Evidence points to "Dangerous Password," a hacking collective tied to North Korea. ZachXBT noted the group’s signature moves: exploiting bridge vulnerabilities and laundering funds through obscure tokens. Ironically, over 50% of the Solana-stolen assets ($5.3M) traced back to SwissBorg—a detail highlighted by analyst @tanuki42_. Garden’s team offered a 10% bounty for recovery, but the hacker remains silent.
SEED Token Crashes 64%
The protocol’s native token, SEED, nosedived to $0.19 within minutes of the news, erasing $2.5 million in market cap. "SEED was already thinly traded on Uniswap pairs," noted a BTCC analyst. "The hacker’s mass sell-off turned a leak into a flood." TradingView charts show SEED’s liquidity evaporated as panic spread.
Garden’s Troubled History
ZachXBT revealed Garden Finance had prior ties to money laundering: 25% of its $2B TVL allegedly came from stolen funds linked to Bybit, SwissBorg, and Chinese organized crime. "The team profited six figures from fees on tainted assets," he wrote in an on-chain message. Critics compare Garden’s lax oversight to ThorChain’s past refusal to freeze exploited funds.
What’s Next for Garden Finance?
The protocol faces existential questions. Daily volumes ($2.5M) and annualized revenue ($2.52M) pale against the hack’s damage. With SEED’s collapse and ZachXBT’s claims of non-cooperation in fund recovery, trust is frayed. "In DeFi, reputation burns faster than tokens," quipped a crypto Twitter observer.
FAQ: Garden Finance Hack Explained
How much was stolen in the Garden Finance hack?
Confirmed losses hit $5.5M, but estimates range up to $11M as investigations continue (Coinmarketcap data).
Which blockchains were affected?
Arbitrum, Solana, and others—the attacker moved funds multichain to evade tracking.
Did Garden Finance recover any funds?
Not yet. The 10% bounty offer remains unanswered, and frozen assets are being rapidly swapped.
