Garden Finance Hit by $5.5M Multi-Chain DeFi Exploit: North Korean Hackers Suspected

• What Exactly Happened in the Garden Finance Exploit?
• North Korea's Dangerous Password Group: The Prime Suspects
• The SEED Token Massacre: 64% Crash in Minutes
• White Hat Offer Falls on Deaf Ears
• FAQ: Your Burning Questions Answered

In a shocking turn of events, Garden Finance became the latest DeFi protocol to fall victim to a sophisticated multi-chain bridge exploit, losing $5.5 million to hackers - with some analysts suggesting the notorious North Korean group Dangerous Password might be behind the attack. The incident triggered a 64% crash in Garden's native SEED token and revealed deeper issues, as blockchain sleuth ZachXBT uncovered that up to 25% of the protocol's $2B in processed volume may have involved laundering stolen funds from previous hacks. While the team offered a 10% WHITE hat bounty, the hacker remains unresponsive as assets continue being rapidly swapped across chains.

What Exactly Happened in the Garden Finance Exploit?

The attack unfolded on October 30, 2025, when unauthorized withdrawals began draining assets across multiple blockchains including Arbitrum and Solana. Blockchain investigator ZachXBT first spotted the suspicious movements, which initially appeared to total $5.5 million but later estimates suggested losses could exceed $11 million. The hacker utilized Garden's bridge infrastructure to move funds, with MetaMask serving as their wallet interface - choosing speed over cost efficiency in their asset routing strategy.

What makes this particularly messy? About half the Solana-based stolen funds ($2.65M) allegedly came from SwissBorg's reserves, creating an awkward situation where one hack appears to be funding another. The stolen assets included a cocktail of wrapped tokens (WBTC, WETH), SEED tokens, and even bitcoin collateral locked via Lombard Finance. Cyvers Alert later pegged the total at $6 million, though frankly in these multi-chain exploits, pinning down exact figures is like trying to catch smoke with your bare hands.

North Korea's Dangerous Password Group: The Prime Suspects

Multiple blockchain analysts, including tanuki42_, pointed fingers at the North Korean-affiliated hacking collective Dangerous Password. If confirmed, this WOULD mark their third major DeFi exploit this year following the Bybit and Euler Finance incidents. These groups have notably shifted tactics recently - instead of targeting major bridges like Wormhole or Ronin, they're picking off smaller protocols where assets can be swapped faster before freeze orders hit.

ZachXBT's investigation uncovered something even more troubling: Garden Finance appears to have been laundering funds from previous hacks. His on-chain analysis suggests 25% of the protocol's vaunted $2B volume came from tainted sources including the Bybit exploit, SwissBorg theft, and even Chinese organized crime operations. "The Garden team profited six figures in fees from stolen funds moving through their bridge," ZachXBT noted in a message attached to the exploit transactions.

The SEED Token Massacre: 64% Crash in Minutes

While the direct hack losses were bad enough, Garden's native SEED token took an absolute pummeling. Within minutes of the news breaking, SEED cratered 64% to $0.19, leaving its market cap at a pitiful $2.5 million. The token - already one of the smaller assets on Garden's bridge - got absolutely shredded as hackers dumped their loot through DEXs.

Looking at the Uniswap charts was downright depressing - SEED's thin liquidity got completely steamrolled by the sell pressure. It's the DeFi equivalent of watching someone try to empty a swimming pool with a teacup during a hurricane. The BTCC exchange briefly suspended SEED trading as volatility spiked, though other major platforms kept markets open.

White Hat Offer Falls on Deaf Ears

In a MOVE that's becoming standard protocol post-hack, Garden's team reached out offering the hacker a 10% bounty to return the remaining funds. As of our deadline? Crickets. Meanwhile, ZachXBT criticized Garden for allegedly failing to cooperate with returning funds from previous exploits - drawing parallels to ThorChain's controversial handling of the Bybit stolen assets.

The Garden bridge continues operating with $2.5M in daily volume, generating about $2.52M in annualized revenue. But let's be real - after this fiasco, those numbers might start looking as stable as a house of cards in an earthquake zone.

FAQ: Your Burning Questions Answered

How much was stolen in the Garden Finance hack?

Initial estimates suggested $5.5M, but later analysis by ZachXBT and Cyvers Alert indicates losses between $6M-$11M across multiple chains.

Which hacker group is suspected?

Evidence points to Dangerous Password, a North Korean-affiliated cybercrime organization known for previous DeFi exploits.

Why did the SEED token crash so hard?

The token's small market cap ($2.5M) and thin liquidity made it extremely vulnerable to the hacker's rapid asset dumping through DEXs.

Has Garden Finance recovered any funds?

As of October 31, 2025, no funds have been returned despite the team's 10% white hat bounty offer.

Were other protocols affected?

Yes - about 50% of Solana-based stolen funds came from SwissBorg's reserves, connecting this exploit to previous attacks.