# ZachXBT Flags $20M XMR Laundering Ring on Hyperliquid

*Author: David Christopher*
*Published: Oct 20, 2026*
*Source: https://www.bankless.com/read/news/zachxbt-flags-20m-xmr-laundering-ring-on-hyperliquid*

---

Onchain investigator ZachXBT says FreedomXMR (FXMR), a centralized laundering service that appeared on Hyperliquid Core in August, has drawn more than 87% of its inflow volume directly from illicit activity, [per his Telegram channel](https://t.me/investigations/367). XMR is up ~73% since Aug. 1 to ~$620, more than double bitcoin's ~31% gain. 

## What's the Scoop?

- **Dirty Inflows:** A manual review of every FXMR inflow above $10K traced $20M+ to ransomware, exploits, malware and social engineering, ZachXBT wrote. He named September's DCENT Wallet, Fetch.ai and Axelar exploits, an unnamed ransomware payment and October's Gamdom exploit. 

- **How It Works:** The admin sources XMR liquidity from KuCoin, with 3K+ deposits to the exchange, and likely uses a swap model similar to Wagyu's, per ZachXBT. 

- **A $31K Ticker:** One of the flagged admin addresses [won the FXMR ticker](https://hypurrscan.io/tx/0xfd78058387f7e753fef10440d9547002017f006922fb0626a140b0d646fbc13e) in Hyperliquid's permissionless auction on July 27 for 518.28 HYPE, roughly $31K at the time, a cheap way onto one of crypto's busiest venues. 

- **Not the First:** ZachXBT says several centralized laundering services, such as b1exch, have abused HL Core's "permissionless design and adoption," and that he's shared a spreadsheet of source data with the Hyperliquid team. Earlier this month, he [said he](https://x.com/zachxbt/status/2107172895218954683) "Froze ~$170K total for the Bitget exploit at a service on HL Core recently." Hyperliquid had not publicly responded as of publication.
---

*This article is brought to you by [NEAR](https://www.bankless.com/sponsor/near-1785257427?ref=read/news/zachxbt-flags-20m-xmr-laundering-ring-on-hyperliquid)*