Garden Finance has come under scrutiny following accusations of money laundering related to a recent $1.4 billion Bybit hack.
Accusations and Garden Finance's Response
According to blockchain investigator ZachXBT, Garden Finance has played a key role in laundering stolen assets connected to the Bybit hack. The platform reported 24,984 BTC swapped in Q2 2025, amounting to over $1.5 billion in volume, and earned 40.11 BTC in fees. ZachXBT questioned the validity of these figures, arguing that a significant portion of the fees could have come from illicit money, with laundering allegedly linked to Chinese agents affiliated with the North Korean Lazarus Group. Jax Gulati, the lead of Garden Finance, responded to the accusations by stating that the platform held 30 BTC at the time of the hack and dismissed implications of centralization.
Concerns About Centralization
Some users raised concerns regarding the liquidity flow within the protocol. User James Scaur proposed that a liquidity distribution could explain why one major provider seemed dominant. However, ZachXBT noted that one player had been constantly transacting large swaps and was connected to transactions involving Bybit-related funds. He suggested that after April 2025, most swaps could be attributed to this single entity, simplifying the detection of malicious transactions and indicating that a more thorough monitoring process was necessary.
Conclusion and Implications
As the accusations gain traction, the platform is now under intense scrutiny. The future of Garden Finance may influence broader discussions regarding the responsibilities of decentralized platforms in illicit crypto movements and their accountability for such actions. While the platform continues to defend its position, questions regarding transparency and obligations remain at the forefront of discussions.
With growing pressure and accusations, Garden Finance finds itself at a crossroads, and the platform's response to current circumstances may shape its reputation and the industry outlook.
