ZachXBT: Over $20 Million in Illicit Funds Passed Through FreedomXMR

Crypto analyst ZachXBT discovered the FreedomXMR (FXMR) service, which, according to his information, is used for money laundering in the Hyperliquid ecosystem. The researcher estimates that over 87% of all funds entering this exchange are obtained illegally. The service began operating in August 2026. By analyzing transfers of $10,000 or more, ZachXBT tracked over $20 million linked to hacking attacks, ransomware, and fraud.

Among the incidents from which funds, according to the analyst, flowed into FreedomXMR are the D’CENT Wallet, Fetch ai, and Axelar exploits in September 2026. He also included an unnamed ransom related to a ransomware attack in the same month and the Gamdom exploit in October.

According to ZachXBT's observations, the administrator of FreedomXMR obtains liquidity in Monero from the KuCoin crypto exchange. The researcher recorded over 3,000 deposits on KuCoin and suggested that the service uses an exchange model similar to Wagyu. The FXMR ticker was acquired at a Hyperliquid auction on July 27, 2026, for 518.28 HYPE, which at that time was about $28,000.

ZachXBT noted that the Hyperliquid Core network has already faced abuse of its permissionless architecture by centralized services, particularly b1exch. In his opinion, such services take advantage of the network's capabilities and its growing popularity. The analyst reported that he provided the Hyperliquid team with a spreadsheet containing the original data on FreedomXMR transactions. Previously, ZachXBT infiltrated a Chinese syndicate and tracked Lazarus Group funds totaling over $1 billion.