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Garden Finance recently suffered a hack, with at least $10.8 million in reported losses. Crypto sleuth ZachXBT identified the hacks just days after calling out the platform for facilitating money launderers.
This isnāt the first time a similar incident has occurred in the crypto space. Earlier this year, THORChain enabled North Korean hackers to launder funds, but they stole from THORChainās founder a few months later.
Earlier this week, Garden Finance announced that it had bridged over $2 billion in tokens, but several prominent sleuths accused it of money laundering.
ZachXBT claimed that over 25% of its traffic came from illicit sources, while Tayvano alleged that DPRK-based criminals were using it en masse.
Itās ironic, then, that those same investigators already have another reason to address the company. Earlier today, ZachXBT reported that Garden suffered a $10.8 million hack:
āGarden Finance was likely exploited for $10.8M+ on multiple chains. An address related to the team sent a message onchain to the alleged exploiter offering a 10% whitehat bounty. A few days ago, I pointed outā¦how Garden Finance was ignoring victims,ā he claimed via Telegram.
His initial message mentioned only $5.8 million in losses before it was revised to a substantially higher number. The edit also claimed that āall freezable assets were quickly swapped.ā In other words, itās unclear exactly how much Garden lost in this hack, but the damage is significant.
Garden itself claimed that the hack compromised multiple blockchains, but it only mentioned Arbitrum directly. The firm also said that āassets have been taken from us,ā rather than suggesting that user funds were a primary target. For the moment, we donāt have any more details about the attackās technical specifications.
Still, all things considered, Garden isnāt the first company to suffer an ironic hack like this. THORChain, for example, was accused of laundering money from hackers on several occasions, including from North Koreaās feared Lazarus Group.
DPRK-based criminals then stole $1.3 million from THORChainās founder a few months later.
Incidents like this generally donāt encourage white hat crimefighters to investigate these cases. Besides, if itās impossible to freeze any stolen assets, what could they even do?
Community investigators could assemble evidence for future prosecution, but that may be totally impractical.
Ultimately, Garden Finance will have to hope that its 10% bounty incentivizes the hackers to cooperate. Otherwise, itāll be difficult to get much closure beyond an analysis of the breach itself.
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