Garden Finance Faces Allegations of Laundering Hacked Funds
Blockchain investigator ZachXBT has accused Garden Finance, a platform claiming to be the fastest Bitcoin bridge, of facilitating the laundering of funds from significant crypto thefts. These include the Bybit hack, with ties to the North Korean Lazarus Group. ZachXBT alleges that over 80% of Garden Finance’s recent fee revenue stems from these illicit activities.
Decentralization Claims Under Scrutiny
Investigations by ZachXBT uncovered that a single entity repeatedly replenished cbBTC liquidity from Coinbase, undermining Garden Finance’s assertion of a decentralized and trustless operation. This activity was monitored in real-time, casting doubt on the platform’s transparency.
- Majority of fees allegedly linked to unauthorized transactions
- Centralized control of liquidity contradicts decentralization claims
- Operational integrity questioned
Garden Finance Responds to Allegations
Jaz Gulati, co-founder of Garden Finance, refuted the accusations, highlighting that 30 BTC in fees were accrued before the Bybit incident. Gulati labeled ZachXBT’s claims as baseless misinformation, reaffirming the platform’s decentralized nature.
Implications for the Crypto Ecosystem
This incident sheds light on the ongoing challenges of maintaining transparency and security within decentralized platforms, particularly those enabling cross-chain swaps. It underscores the critical need for enhanced oversight mechanisms in the cryptocurrency domain.
