The investigation highlights how FreedomXMR (FXMR) functions as a centralized laundering service utilizing Hyperliquid’s permissionless infrastructure. ZachXBT identified the service's primary hot wallet and three administrator-controlled addresses, noting that the platform emerged in August following a token auction that cost 518.28 HYPE. The analysis specifically tracked historical transactions exceeding $10,000, revealing a pattern of activity that mirrors previous laundering operations like b1exch.
In section Cryptocurrency
Blockchain investigator links FreedomXMR to $20M in illicit inflows
Blockchain investigator ZachXBT has uncovered that over 87% of funds flowing into the FreedomXMR exchange on Hyperliquid Core originate from cybercrime. His analysis traces more than $20 million in assets directly to ransomware payments, social engineering schemes, and high-profile exploits including those targeting Fetch.ai and the Gamdom gambling platform.
Beyond the primary exploits, the probe details a complex flow of capital involving Monero (XMR) liquidity sourced through the KuCoin exchange. ZachXBT documented more than 3,000 deposits into KuCoin from addresses linked to the service. While the use of Monero complicates tracking due to its privacy-focused architecture, the findings suggest a structured swap arrangement. ZachXBT has provided his supporting blockchain data to the Hyperliquid team, though the protocol has yet to announce any formal enforcement actions or account restrictions regarding the service's continued operation on its network.
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