Garden Finance processed 24,987 BTC in Q2 2025 across 40,634 swaps, collecting 40.16 BTC in fees.
ZachXBT claims over 80% of Garden’s fees are linked to laundering funds from the Bybit hack.
Accusations focus on a single actor dominating large swaps, raising concerns about platform control.
A heated exchange has emerged in the crypto community after on-chain investigator ZachXBT publicly accused Garden Finance of laundering stolen funds tied to the $1.4 billion Bybit hack. The allegations surfaced as the platform reported significant growth in the second quarter of 2025, with over $1.5 billion in Bitcoin swaps. As scrutiny increases, the discussion has sparked concerns over decentralization and the responsibilities of bridge platforms handling large transactions.
Record Growth and Transaction Volume in Q2 2025
According to recent data from Dune Analytics, Garden Finance processed 24,987 BTC in Q2 2025. This volume equals more than $1.5 billion across 40,634 atomic swaps. The platform also collected 40.16 BTC in fees during this period, with the largest single swap involving 10 BTC. Charts published on Dune Analytics showed a spike in activity, with fee collection, user interactions, and swaps sharply rising since Q1.
Source: Dune Analytics (Garden Finance)
These metrics placed Garden Finance among the fastest-growing Bitcoin bridges in the crypto sector during this timeframe. On the third week of June, ZachXBT posted on X, accusing Garden Finance of laundering stolen crypto tied to recent hacks. He claimed that more than 80% of the platform’s fees were linked to fund laundering.
https://twitter.com/zachxbt/status/1936327174757474756
ZachXBT further connected the movement of hacked funds to Chinese laundering networks allegedly tied to the Lazarus Group. In response, Garden Finance founder Jaz Gulati denied the accusations. He shared a previous Q4 2024 post, stating that the platform received 30 BTC before the Bybit incident. He used this to reject claims of knowingly handling stolen funds.
Debate Over Decentralization and Large Swap Activity
ZachXBT described Garden Finance as a "fake decentralized bridge" and said it lacked proper control over illicit transactions. Gulati dismissed this label as misinformation, stating that the platform followed decentralized processes.Another user, James Scaur, joined the discussion three hours later and supported the platform.
Source : X
He explained that a Pareto distribution may apply, where one liquidity provider covers most of the swap volume. Scaur added that this situation does not automatically indicate centralization. ZachXBT then responded by accusing a single actor of continuously topping up cbBTC liquidity through Coinbase for illegal transfers. He noted that only one entity had been filling swap orders since the 10 cbBTC cap increase. ZachXBT reported that Garden Finance saw a surge in Bybit-related transactions since April 2025.
He said the platform was previously warned about this activity and had not taken corrective action. He added that most fees collected were driven by an early 2024 airdrop campaign, not organic user growth. ZachXBT urged the platform to disable large swaps and return the fees if it could not block illicit activity. The dispute remains unresolved, with increasing pressure on Garden Finance as further investigation looms.
