- ZachXBT alleges Garden Finance laundering crypto assets.
- Founder refutes with pre-hack transaction evidence.
- Growing scrutiny but no regulatory action yet.
ZachXBT has accused Garden Finance, a Bitcoin-DeFi protocol, of laundering hacked funds. Founder Jaz Gulati denied the claims, citing pre-hack transactions.
ZachXBT’s accusation against Garden Finance underscores potential crypto protocol vulnerabilities, affecting market confidence. The unresolved allegations contribute to ongoing industry scrutiny.
Controversy Around Bybit Exploit
Garden Finance stands accused by ZachXBT of laundering stolen assets from Bybit’s $1.4 billion exploit. The protocol’s founder, Jaz Gulati, disputes the allegations, asserting funds were received before the hack. The community remains divided over the evidence presented.
“Over 80% of Garden Finance’s recent fees have come from laundering stolen funds, including proceeds linked to North Korea’s Lazarus Group.” — ZachXBT, On-Chain Investigator Source
The accusation revolves around whether Garden Finance’s increase in BTC volume is genuine or implicated in laundering activities linked to the Bybit hack. Jaz Gulati has publicly denied involvement, providing transaction data to support his claims. The protocol’s legitimacy is now under intense community scrutiny.
Both the market and regulatory observers await further developments as no formal investigations or asset freezes have been announced. The Garden Finance founder’s active defense contrasts with public doubts fueled by ZachXBT’s on-chain findings.
Market Reactions and Historical Context
Immediate market reactions remain muted as investors process complex on-chain data, while the broader industry watches for any implications stemming from these allegations. Past similar cases have affected protocols’ reputations severely, potentially influencing investor trust and future protocols.
ZachXBT’s findings, which suggest substantial earnings from alleged laundering, mirror past protocols targeted for similar activities. Without regulatory comment, the case remains speculative, yet on-chain analysis may bolster potential future investigations should evidence prove compelling.
Historical precedents suggest that crypto protocols involved in laundering stolen assets often face regulatory actions or blockchain audits, impacting their operations and market perceptions. The ultimate outcome for Garden Finance hinges on ongoing public scrutiny and possible regulatory interest.
