Garden Finance has become the center of a scandal involving allegations of money laundering. Analyst ZachXBT claims that a significant portion of the platform’s revenue may stem from illicit activities.
Allegations Against Garden Finance
Garden Finance, a service offering Bitcoin bridging, has been accused of aiding hackers in money laundering. ZachXBT, a cryptocurrency analyst, claimed that over 80% of the platform's fees came from illegally sourced funds. The total fees collected by Garden Finance are approximately $300,000, and ZachXBT is convinced he could prove connections between Garden Finance and illicit activities through blockchain analysis.
Garden Finance's Response to Allegations
According to Garden Finance, 30 BTC that became a topic of discussion was used prior to the Bybit hack. Co-founder Jaz Gulati asserts that ZachXBT's accusations are based on misinformation. The debate persists between supporters of Garden Finance and blockchain analysts examining possible links to recent hacks, including the WazirX hack.
Expert Discussions and Opinions
James Scaur, a supporter of Garden Finance, joined the debate, suggesting alternative explanations for the blockchain links identified by ZachXBT. He pointed to the Pareto distribution, which could explain the uneven distribution of liquidity providers. However, ZachXBT maintains that the lack of a stable liquidity structure in Garden Finance creates potential for abuses. Given the modern threats to the blockchain industry, questions about decentralization and possible connections to criminal elements remain relevant.
The situation surrounding Garden Finance raises critical questions about decentralization and security in the cryptocurrency space. Ongoing allegations highlight the need for stricter controls and analysis of platforms to prevent their use in criminal schemes.
