Garden Finance temporarily suspended its application after an attacker compromised the off-chain database of an independent solver, triggering unauthorized crypto transfers worth about $450,000. The cross-chain atomic swap protocol said the incident did not affect its core infrastructure, smart contracts, or user funds. Instead, the losses were limited to assets controlled by the impacted solver, highlighting the distinction between protocol security and the operational risks faced by independent infrastructure providers.
The platform said it disabled user-facing services as a precaution while security teams investigated the breach, isolated the affected systems, and reviewed the broader network before restoring operations.
How the Attack Unfolded
According to Garden Finance, the attacker gained unauthorized access to the independent solver’s off-chain database and inserted fraudulent swap records. Those manipulated records caused the solver to release assets for swap requests that had not been funded by counterparties.
The exploit targeted operational infrastructure rather than the protocol’s hash time-locked contract architecture. As a result, Garden Finance maintained that its atomic swap mechanism continued to function as designed and that customer assets remained protected throughout the incident.
The project also said it is working with multiple blockchain security firms to investigate the attack, trace the transferred funds, and strengthen monitoring procedures before bringing the application fully back online.
Infrastructure Risks in Focus
The incident underscores a growing trend across the cryptocurrency industry, where attackers increasingly target off-chain infrastructure instead of smart contract code. Even when decentralized protocols remain secure, operational systems such as databases, servers, and validator infrastructure can create opportunities for attackers if they are compromised.
Garden Finance emphasized that its decentralized architecture helped contain the damage because the affected solver operated independently from the protocol itself. The company said the temporary shutdown was intended to ensure no additional infrastructure was at risk while investigators completed their review.
Although the financial impact was limited to the solver’s inventory, the event serves as another reminder that protecting decentralized applications requires securing both blockchain-based systems and the off-chain infrastructure that supports daily operations.
