ZachXBT links FreedomXMR to $20 million in illicit crypto inflows

On-chain investigator ZachXBT has identified FreedomXMR, a token swap service on the Hyperliquid Core network, as a centralized money laundering service. According to the report, over 87% of the service's inflows are linked to illicit activities.

ZachXBT's analysis of transactions exceeding $10,000 traced more than $20 million to various criminal activities, including ransomware, malware, social engineering, and high-profile exploits involving DCENT Wallet, Fetch.ai, Axelar, and Gamdom. The service facilitates swaps into Monero, a privacy-focused cryptocurrency.

While the Hyperliquid network operates on a permissionless model, ZachXBT noted that the FreedomXMR operator appears to source Monero liquidity through KuCoin. The investigator has shared these findings with the Hyperliquid team, though no official enforcement actions or public responses have been announced as of the report.