On-chain investigator ZachXBT said he traced more than $20 million in funds sent to FreedomXMR, which operates on Hyperliquid Core, to hacks and shared his findings with the Hyperliquid team.
In an investigation reported by Wu Blockchain, ZachXBT described FreedomXMR (FXMR), which emerged in August 2026, as a centralized money laundering service. The investigator alleged that more than 87% of the funds sent to the service were directly linked to illicit activity.
The investigation tracked historical deposits of more than $10,000 per transaction. ZachXBT said he linked more than $20 million to ransomware, vulnerability exploits, and social engineering attacks. Incidents involving DCENT Wallet, Fetch.ai, Axelar, and Gamdom were also mentioned in this context.
The investigation also found a KuCoin connection
According to ZachXBT’s findings, the administrator of FreedomXMR sourced the Monero (XMR) liquidity used by the service from KuCoin. Related addresses were said to have made more than 3,000 deposits to the exchange.
The investigator said he shared the on-chain data supporting his allegations with the Hyperliquid team. The money laundering allegations in the investigation are directed at FreedomXMR; KuCoin is mentioned as the source of liquidity and the exchange where the addresses transacted.
Not investment advice.