Garden Finance Exploit Exceeds $10.8 Million
Garden Finance has experienced a security breach that resulted in losses surpassing $10.8 million across various blockchain networks. An investigation by on-chain analyst ZachXBT revealed that over 25% of the platform’s historical transactions involved funds that were stolen from the platform.
Increased Scrutiny on Bitcoin Bridge
This incident raises concerns about a Bitcoin bridge that is already under fire for allegedly enabling money laundering for North Korean operations. A wallet associated with Garden’s team sent an on-chain communication to the suspected hacker, offering a 10% white-hat bounty, although the company has yet to make any official announcements.
Immediate Actions by Attacker
The hacker quickly converted all freezeable assets through addresses 0x98***D12 on EVM chains and WZy4***JCH on Solana. Just days prior to the exploit, ZachXBT publicly criticized Garden Finance for neglecting victims who sought fee refunds after the platform had processed funds from significant hacks, including those from Bybit and Swissborg.
Estimated Illicit Activity
ZachXBT estimates that more than a quarter of Garden’s total transaction volume originated from illegal sources, allowing the platform to earn substantial profits from these transactions between April and July 2025 alone. This scrutiny particularly targeted co-founder Jaz Gulati, who had recently touted the platform’s growth since it evolved from the Ren Protocol.
Historical Context of the Protocol
According to research, Garden Finance is the successor to Ren Protocol, which was founded in 2017 in Australia. Originally named Republic Protocol and later rebranded, it raised $67 million through an ICO and venture funding and facilitated over $13 billion in Bitcoin transactions during the DeFi boom. The protocol was acquired by Alameda Research in 2021, but its operations ended following the collapse of FTX.
Connections to Money Laundering
Both Ren Protocol and Garden Finance have been linked to laundering over $540 million, with ZachXBT describing them as “money washing machines.” The blockchain intelligence firm Elliptic reported that Ren processed substantial amounts of illicit funds and was used by notorious hacking groups.
Ongoing Issues with North Korean Connections
Evidence indicates that more than 75% of Garden’s total transaction volume came from stolen assets, with significant transactions occurring shortly after major hacks. Criticism from crypto investigator Tayvano included allegations that North Korean hackers were actively using Garden for money laundering. The lack of action from the company on these serious issues raises questions about their commitment to user safety and compliance.
