ZachXBT Links More Than 87% of FreedomXMR Inflows to Illicit Activity
Blockchain investigator ZachXBT has linked more than 87% of inflows to FreedomXMR, a service operating on Hyperliquid Core, to illicit activity, alleging that more than $20 million in funds originated from ransomware, cryptocurrency exploits, malware and social engineering schemes.
According to information shared by Coin Bureau, ZachXBT examined historical deposits exceeding $10,000 and traced funds associated with multiple incidents, including cases involving DCENT Wallet, Fetch.ai, Axelar and Gamdom. The findings raise questions about the source of funds flowing through FreedomXMR and the role of cryptocurrency services in moving assets linked to criminal activity.
ZachXBT Details FreedomXMR Transaction Links
The investigation focused on historical deposits above $10,000, allowing ZachXBT to identify transactions he says were directly connected to illicit activity. According to his findings, the traced funds exceeded $20 million and covered several categories of suspected or reported wrongdoing, including ransomware, exploits, malware and social engineering.
The reported figure of more than 87% refers to the share of FreedomXMR inflows that ZachXBT linked to illicit activity. The allegation concerns the origins of funds entering the service, rather than establishing that every transaction processed by the platform was criminal in nature.
The incidents cited in the investigation include those involving DCENT Wallet, Fetch.ai, Axelar and Gamdom. These names provide specific points of reference in the transaction tracing, although the information shared in the report does not provide a separate breakdown of the amount attributed to each incident.
FreedomXMR Described as a Centralized Laundering Service
ZachXBT has characterized FreedomXMR, also referred to as FXMR, as a centralized laundering service that emerged in August. He also alleges that the service's administrator obtains Monero liquidity from KuCoin, a cryptocurrency exchange.
According to the investigator, addresses associated with the administrator made more than 3,000 deposits to KuCoin. The reported transaction count adds another element to the investigation by identifying activity involving an exchange alongside the alleged movement of funds through FreedomXMR.
Monero is a privacy-focused cryptocurrency, while KuCoin operates as a centralized digital asset exchange. The alleged sourcing of Monero liquidity and the reported deposits are part of ZachXBT's account of how the service operates. The information provided does not specify the value of those deposits or establish that every deposit was connected to illicit proceeds.
Findings Shared With Hyperliquid Team
ZachXBT said he had shared the supporting onchain data with the Hyperliquid team. The disclosure places the findings directly before the team associated with the ecosystem on which FreedomXMR operates.
Onchain investigations use publicly available blockchain transaction records to trace markets movements between addresses and identify potential links among transfers. Such analysis can reveal patterns and connections, but the interpretation of those links depends on the evidence supporting the attribution of addresses and transactions to particular activities.
The information reported by Coin Bureau centers on three principal allegations: that more than 87% of FreedomXMR inflows are linked to illicit activity, that historical deposits above $10,000 allowed ZachXBT to trace more than $20 million to a range of criminal activity, and that addresses associated with the service's administrator made over 3,000 deposits to KuCoin. ZachXBT has provided the supporting onchain data to the Hyperliquid team, according to the report.
Writer: Victoria HaleTechnology & Blockchain WriterVictoria Hale writes about blockchain technology, digital infrastructure, and the intersection of emerging technologies with finance. Her articles explore how new protocols and systems are shaping the evolving digital economy.She prioritises clarity and accuracy when explaining technical developments to a general audience.
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