WuBlockchain
On-chain investigator ZachXBT reported that more than 87% of inflows to FreedomXMR, or FXMR, were directly linked to illicit activity. The centralized money laundering service emerged on Hyperliquid Core in August 2026.
Why it matters
A review of historical inflows above $10,000 per transaction traced more than $20 million to ransomware, exploits and social engineering attacks. The incidents included cases involving DCENT Wallet, Fetch ai, Axelar and Gamdom.
The findings connect a service operating within the Hyperliquid ecosystem to funds tied to multiple forms of crypto crime. ZachXBT shared the supporting on-chain data with the Hyperliquid team.
Market impact
The investigation also found that FXMR's administrator sourced XMR liquidity from KuCoin. Associated addresses made more than 3,000 deposits to the exchange, creating an additional exchange-compliance trail around the service.
The disclosures raise security and illicit-finance concerns for Hyperliquid Core and could increase scrutiny of how money-laundering services access liquidity across centralized exchanges and on-chain venues.
Frequently asked questions
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What percentage of FXMR inflows did ZachXBT link to illicit activity?
ZachXBT reported that more than 87% of FXMR inflows were directly linked to illicit activity.
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How much money was traced to ransomware and other attacks?
More than $20 million in historical inflows above $10,000 per transaction were traced to ransomware, exploits and social engineering attacks.
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Which incidents were connected to the FXMR inflows?
The traced activity included incidents involving DCENT Wallet, Fetch ai, Axelar and Gamdom.
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Where did FXMR's administrator source XMR liquidity?
The investigation found that FXMR's administrator sourced XMR liquidity from KuCoin.
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What did ZachXBT share with the Hyperliquid team?
ZachXBT shared supporting on-chain data about FXMR's inflows and their links to illicit activity with the Hyperliquid team.
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