Hyperliquid's permissionless experiment has a $20 million money-laundering problem — allegedly.
On-chain investigator ZachXBT published findings on October 20 claiming that FreedomXMR, a swap service running on Hyperliquid Core, funneled stolen crypto into Monero: he says more than 87% of its inflows — over $20 million — trace to ransomware payments, exploits, malware and social-engineering scams. Named incidents include the September attacks on DCENT Wallet, Fetch.ai and Axelar, plus an October exploit on gambling platform Gamdom.
The uncomfortable part: FreedomXMR got its FXMR ticker through Hyperliquid's open Dutch auction in July — 518 HYPE, roughly $28,000. No listing committee, no gatekeepers. ZachXBT says the operator sourced XMR liquidity through KuCoin via 3,000+ deposits (not accused of knowing participation), and that he shared the data with the Hyperliquid team. No enforcement action has been reported.
Permissionless listings were meant to remove gatekeepers, not auditors. If anyone can buy a ticker and run a laundering desk on a major venue, whose job is it to notice — the chain's, or nobody's? NFA. DYOR.
$HYPE #CryptoNews #Hyperliquid #DeFi #OnChain
On-chain investigator ZachXBT published findings on October 20 claiming that FreedomXMR, a swap service running on Hyperliquid Core, funneled stolen crypto into Monero: he says more than 87% of its inflows — over $20 million — trace to ransomware payments, exploits, malware and social-engineering scams. Named incidents include the September attacks on DCENT Wallet, Fetch.ai and Axelar, plus an October exploit on gambling platform Gamdom.
The uncomfortable part: FreedomXMR got its FXMR ticker through Hyperliquid's open Dutch auction in July — 518 HYPE, roughly $28,000. No listing committee, no gatekeepers. ZachXBT says the operator sourced XMR liquidity through KuCoin via 3,000+ deposits (not accused of knowing participation), and that he shared the data with the Hyperliquid team. No enforcement action has been reported.
Permissionless listings were meant to remove gatekeepers, not auditors. If anyone can buy a ticker and run a laundering desk on a major venue, whose job is it to notice — the chain's, or nobody's? NFA. DYOR.
$HYPE #CryptoNews #Hyperliquid #DeFi #OnChain