according to materials from the site - By TheCoinrise Media

Blockchain researcher ZachXBT accused Garden Finance of facilitating the laundering of funds stolen in a massive $1.4 billion Bybit hack. Recently, the decentralized cryptocurrency exchange platform reported high growth metrics. However, critics believe that much of this activity could be linked to suspicious or criminal transactions.

In its Q2 2025 report, Garden Finance shared data from Dune Analytics showing high transaction activity. The platform processed about 24,984 bitcoins (BTC) in swaps amounting to over $1.5 billion in 40,571 atomic swaps. It also earned 40.11 BTC in fees, with one manual swap reaching a volume of 10 BTC.
Although these figures were supposed to demonstrate success, they quickly drew criticism. ZachXBT questioned the source of such high volumes and fees. He stated that over 80% of the platform's revenue might have been derived from laundering stolen assets.

He said that Chinese agents linked to North Korea's Lazarus Group used Garden Finance to move stolen funds.

In response, Garden Finance's head, Jax Gulati, pointed to a past update from Q4 2024. He said that at the time of the Bybit hack, there were only 30 BTC on the platform and denied that it was centralized or pretending to be decentralized.
However, ZachXBT was unconvinced. He mentioned other hacks, such as WazirX, to demonstrate a pattern. He claimed that the same group continued to use Garden Finance, raising concerns about who is using the platform and how it is monitored.

Further fueling the debate, a user named James Skour commented on the nature of the liquidity flow on Garden Finance. He said the reason one user apparently controls most of the liquidity could be explained by Pareto distribution, which often occurs in financial systems. According to him, this does not mean the platform was centralized.

However, ZachXBT disagreed. He said that one user had been making large swaps since the limit was raised to 10 cbBTC. He claimed that this person added cbBTC through Coinbase and transferred funds related to the Bybit hack.

By April 2025, ZachXBT stated that most swaps on the platform were linked to this same group, making it easier to detect suspicious activity. He wondered why the Garden Finance team had not taken action earlier.

ZachXBT accused Garden Finance of profiting from these illegal transactions. He said the team should return the fees earned from such swaps and disable large transaction features.

This sparked significant debate in the decentralized finance (DeFi) space. Similarly, Bybit asked ParaSwap DAO to return over $90,000 in ETH paid by the hacker as swap fees. It also claimed that part of the revenue was used in an earlier airdrop farming, a strategy that some employ to unfairly profit from new token releases.

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