$5.5M Garden Finance Hack Sparks Whitehat Hunt Amid DeFi Chaos

 

Garden Finance $5.5M Hack Raises Alarm Across Crypto Industry: Team Silent, Whitehat Bounty Offered

The world of decentralized finance (DeFi) was rocked once again in 2025 as Garden Finance, a cross-chain crypto bridge, suffered a staggering $5.5 million hack that has left investors and analysts questioning the security of emerging crypto platforms. As reports continue to surface, total losses from the breach have now been estimated at more than $10.8 million, highlighting persistent vulnerabilities in DeFi infrastructure and raising concerns over systemic risks in multi-chain projects.

Source: X

According to industry news outlet WuBlockchain, the hacker exploited Garden Finance’s multi-chain network using the wallet addresses 0x98BCc6c34A489CEfdD9DfA8d792CFEFb02Ea2D12 and WZy4xxpqktWa1b6MPMRiWsD487CT8mDcapB6GufBJCH, siphoning millions of dollars in Ethereum and other cryptocurrencies.

Source: ZachXBT

In an unusual response, the Garden Finance team has remained largely silent publicly. Instead, they issued an on-chain message to the attacker offering a 10% whitehat bounty if the funds were returned. While this measure is not unprecedented in crypto, it has drawn significant attention due to the lack of direct communication with investors or the wider community.

The hack has ignited fears that Garden Finance may be more than a simple bridge vulnerability. Analysts now warn that stolen funds could be funneled and laundered through the platform, echoing patterns observed in previous crypto scandals.

Tracing the Roots: From Ren Protocol to Garden Finance

To fully understand the implications of the Garden Finance hack, it is important to revisit its origins and links to prior blockchain exploits. The project traces its lineage to Ren Protocol, formerly known as Republic Protocol, co-founded in 2017 by Taiyang Zhang, Loong Wang, and Jaz Gulati. Initially raising $67 million, Ren Protocol became a major player in Bitcoin and cryptocurrency transfer solutions, handling over $13 billion in cross-chain transfers during the DeFi boom.

In 2021, Alameda Research, the investment firm connected to FTX, acquired Ren Protocol for $700,000 per quarter, integrating it into the Solana ecosystem. However, following the collapse of FTX, Ren Protocol was effectively shut down, leaving users with approximately $12 million in frozen Bitcoin.

Two years later, in 2023, former Ren developers launched Garden Finance, promoting it as a faster, more efficient successor to Ren Protocol. Despite ambitious marketing and promises of enhanced security, the recent hack suggests that structural issues from its predecessor may have persisted, raising serious questions about due diligence and platform safety.

ZachXBT Investigation: A Pattern of “Money Washing Machines” in DeFi

Security researcher ZachXBT has conducted a detailed investigation into the Garden Finance exploit, uncovering alarming trends. According to his analysis, the multichain $10.8 million hack may represent only a fraction of a broader problem spanning multiple platforms. Together, Ren Protocol and Garden Finance are reportedly linked to over $540 million in stolen or illicit funds, implicating them as facilitators in cross-chain laundering operations.

Over 25 documented breaches have reportedly leveraged these bridges to convert stolen Ethereum into Bitcoin, often routing the funds through intermediary chains to obfuscate origins. ZachXBT describes the process as a “money washing machine”: ETH stolen on one chain, converted to BTC, mixed through platforms like cbBTC, and then moved to Solana for final extraction. His findings indicate that nearly 75% of Garden Finance’s total transaction volume may have historically involved compromised or illicit assets.

Investor Concerns and Industry Panic

The silence from Garden Finance has only intensified fears. Unlike typical responses where hacked platforms provide updates or recovery plans, Garden Finance has relied solely on the whitehat bounty incentive. Victims seeking refunds or support have reported receiving minimal engagement, creating an atmosphere of frustration and distrust.

Industry observers note that the rapid swapping and movement of assets following the hack makes recovering stolen funds extremely difficult, if not impossible. Meanwhile, discussions across crypto forums and social media are centered around whether DeFi innovation is increasingly blurring the line between legitimate financial innovation and potential criminal exploitation.

Security Lessons and Broader Implications for DeFi

The Garden Finance hack underscores persistent challenges within the DeFi ecosystem. Multi-chain bridges, while critical for faster and more flexible crypto transfers, continue to be major vectors for exploitation. Analysts emphasize that despite technological advances, the combination of anonymity, cross-chain complexity, and limited regulatory oversight creates a high-risk environment for both investors and developers.

Experts recommend that DeFi platforms implement robust internal controls, continuous auditing, and transparent communication strategies to maintain user trust. In addition, the importance of collaborative security initiatives, including bug bounties, whitehat programs, and third-party audits, cannot be overstated.

The incident also raises questions about regulatory oversight. While crypto markets remain largely decentralized, authorities are increasingly scrutinizing high-risk platforms. If unaddressed, security lapses like those at Garden Finance may accelerate calls for stricter compliance frameworks and enhanced investor protections.

Conclusion: Innovation or Risk?

The Garden Finance hack is more than a typical crypto exploit; it serves as a cautionary tale for the rapidly evolving DeFi landscape. From the project’s origins in Ren Protocol to its current cross-chain ambitions, the events of October 2025 highlight the thin line between financial innovation and systemic vulnerability.

As investigations continue and regulators observe the fallout, the crypto community is watching closely. The effectiveness of whitehat bounty programs, combined with proactive communication, may determine whether Garden Finance can rebuild trust or faces long-term reputational damage.

For now, the incident is a stark reminder that in cryptocurrency, rapid growth and technological sophistication do not guarantee security. Investors are urged to exercise caution, perform thorough due diligence, and monitor multi-chain platforms carefully. The Garden Finance saga is a powerful example of how quickly a promising project can pivot from innovation to scrutiny, and from trust to investigation.

Writer @Ellena

Erlin is an experienced crypto writer who loves to explore the intersection of blockchain technology and financial markets. She regularly provides insights into the latest trends and innovations in the digital currency space.

 

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