Blockchain investigator ZachXBT has accused Bitcoin bridge Garden Finance of facilitating the laundering of funds tied to major crypto thefts, sparking a debate about the platform's decentralization and security. In a post on X (formerly Twitter) on June 21, 2025, ZachXBT claimed that over 80% of Garden Finance's recent fee revenue stemmed from illicit transactions allegedly linked to the North Korean Lazarus Group, a notorious cybercrime organization.
The allegation came in response to a post by Jaz Gulati, a co-founder of Garden Finance, who touted the platform's success, citing 38.86 Bitcoin in collected fees – $300,000 of which was earned over the 12 days ending June 2. ZachXBT retorted, "You conveniently left out >80% of your fees came from Chinese launderers moving Lazarus Group funds from the Bybit hack." The investigator further alleged that a single actor continuously topped up cbBTC liquidity from Coinbase, effectively fueling illicit flows while Garden claimed to operate a trustless and decentralized model. He questioned the project's claims of decentralization, asking how it could be considered decentralized when a single entity was observed topping up cbBTC liquidity from Coinbase for multiple days.
Gulati has denied the allegations, pointing out that 30 BTC in fees were collected prior to the Bybit incident. He dismissed the criticism as misinformation, calling the "fake decentralized" label baseless.
Garden Finance brands itself as "the fastest Bitcoin bridge," enabling cross-chain Bitcoin swaps in as little as 30 seconds. It claims to be built using an intents-based architecture with trustless settlements, ensuring zero custody risk for users. According to its Dune Analytics dashboard, the project has facilitated over 24,984 BTC in total volume.
The accusations against Garden Finance highlight the ongoing challenges of combating money laundering and illicit activity in the cryptocurrency space. DeFi, while offering potential benefits such as decentralization and increased financial access, has also become a target for criminals seeking to exploit vulnerabilities and launder illicit funds. ZachXBT's investigation raises concerns about the effectiveness of Garden Finance's security measures and its ability to prevent the laundering of stolen funds.
This is not the first time ZachXBT has exposed illicit activity in the Web3 space. The pseudonymous investigator has made a name for themself by uncovering various scams, frauds, and thefts in the blockchain industry, helping victims recover their funds and bringing bad actors to justice. Their work has led to the identification of North Korean activity in Web3, including scams and hacks originating from the country, as well as the discovery of over $200 million USD in stolen funds across a minimum of 25 thefts.
The Garden Finance case underscores the need for stronger regulations and security measures in the DeFi space to prevent money laundering and protect users from financial harm. As the cryptocurrency industry continues to evolve, it is crucial to address these challenges to ensure the long-term sustainability and integrity of the ecosystem.
