Garden Finance Hit by Multi-Chain Security Breach in DeFi: $5.5M Stolen, SEED Token Crashes 64%

• What Happened in the Garden Finance Exploit?
• North Korean Connection: DangerousPassword Strikes Again?
• The Laundering Allegations That Compound the Crisis
• SEED Token Collapse: The $2.5M Aftermath
• Negotiations and Damage Control
• The Bigger Picture: DeFi Security in 2025
• What's Next for Garden Finance?
• How to Protect Yourself in DeFi's Wild West

In a shocking turn of events, Garden Finance became the latest DeFi protocol to fall victim to a sophisticated multi-chain exploit, losing $5.5 million in digital assets. The breach, first detected by blockchain investigator ZachXBT on October 30, 2025, has sent shockwaves through the crypto community. What makes this attack particularly concerning is its connection to suspected North Korean hackers and the protocol's alleged involvement in laundering stolen funds from previous hacks. As the dust settles, the native SEED token has plummeted 64%, while the team scrambles to contain the damage and negotiate with the attackers.

What Happened in the Garden Finance Exploit?

The attack unfolded across multiple blockchains including Arbitrum and Solana, with the hackers exploiting a vulnerability in Garden's bridge protocol. Blockchain analytics show the attackers made off with a mix of assets: wrapped BTC (WBTC), Ethereum, cbbtc, and the platform's native SEED tokens. Interestingly, over 50% of the stolen Solana-based assets (approximately $5.3M) traced back to SwissBorg wallets. The hackers used MetaMask for transactions, opting for fast but expensive routing methods. According to Cyvers Alert, the total loss might actually approach $6 million when accounting for all chains involved.

North Korean Connection: DangerousPassword Strikes Again?

Several blockchain investigators, including ZachXBT, have pointed fingers at the North Korean hacking collective known as DangerousPassword. This group has been increasingly active in targeting DeFi protocols, though bridge attacks had become less common recently. "They've shifted tactics to exploit less secure protocols for quick asset transfers," noted a BTCC market analyst. The timing is suspicious too - just before the exploit, Garden Protocol had been receiving funds linked to previous hacks including the Bybit and SwissBorg breaches.

The Laundering Allegations That Compound the Crisis

ZachXBT dropped a bombshell revelation: up to 25% of Garden Finance's $2 billion in total value locked (TVL) might have been laundered money from prior hacks. "The Garden team pocketed six-figure profits from commissions on stolen funds moving through their gateway," ZachXBT claimed in an on-chain message to the hacker. This echoes a similar incident with Thorchain, which refused to freeze funds from the Bybit exploit. The protocol's daily volume of $2.5 million now faces serious scrutiny about its legitimate origins.

SEED Token Collapse: The $2.5M Aftermath

The market reaction was brutal for SEED holders. Within minutes of the breach announcement, the token price cratered 64% to $0.19, leaving its market cap at just $2.5 million. "The DEX dump was savage - illiquid markets like SEED's Uniswap pairs can't handle that kind of selling pressure," observed a TradingView chart analyst. Many retail investors got caught holding the bag as sophisticated traders front-ran the news.

Negotiations and Damage Control

In a desperate move, Garden's team reached out to the hacker with a 10% "ethical bounty" offer for returning the funds, but received no response. They've promised immediate asset replacement for affected users, though ZachXBT alleges the protocol hasn't cooperated in returning funds from previous hacks. The team's blockchain message stated: "We're aware our systems were compromised across multiple chains... We're offering a 10% reward to help recover funds and fix the vulnerability."

The Bigger Picture: DeFi Security in 2025

This incident highlights the ongoing cat-and-mouse game between DeFi protocols and sophisticated hackers. While bridge attacks have declined since their 2022-2023 peak, they remain devastating when successful. "Protocols need to audit not just their code, but their entire financial inflows," warns the BTCC research team. According to CoinMarketCap data, this marks the 7th major DeFi exploit in Q4 2025 alone, totaling over $48 million in losses.

What's Next for Garden Finance?

The protocol faces an uphill battle to regain trust. Beyond the immediate financial loss, the laundering allegations could bring regulatory scrutiny. Some community members are calling for a complete overhaul of the team and governance structure. Meanwhile, the SEED token's recovery seems unlikely without significant buy-in from institutional players.

How to Protect Yourself in DeFi's Wild West

For investors, this serves as another reminder of DeFi's risks: always research protocols thoroughly, diversify across chains, and never invest more than you can afford to lose. As one Reddit user put it: "In crypto, your money can grow like a garden - but sometimes, the weeds take over."