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ZachXBT: Over 87% of funds flowing into the new money laundering service FXMR are directly linked to illegal activities.

2026.10.20 20:17:10

On-chain investigator ZachXBT published a report stating that a centralized money laundering service called FreedomXMR (FXMR) emerged on Hyperliquid Core in August 2026, with over 87% of its inflow volume directly linked to illegal activities. ZachXBT manually reviewed FXMR’s historical inflow transactions exceeding $10,000 each, tracing more than $20 million in funds directly to ransomware, exploit attacks, malware, and social engineering incidents. These include attacks targeting DCENT Wallet, Fetch.ai, and Axelar in September 2026, unnamed ransomware payments, and the Gamdom attack in October 2026. ZachXBT also noted that FXMR operators source Monero (XMR) liquidity via KuCoin, with associated addresses making over 3,000 cumulative deposits to the exchange, and its operating model may mirror that of Wagyu’s mixing service. The FXMR token contract was acquired via a Hyperliquid auction on July 27, 2026, for 518.28 HYPE tokens, valued at roughly $28,000 at the time. ZachXBT added that Hyperliquid Core has previously hosted other centralized money laundering services like b1exch, which leverage the blockchain’s permissionless mechanisms to operate, and confirmed he has shared a spreadsheet containing relevant data with the Hyperliquid team. The fund tracing and illegal association ratios referenced are conclusions from ZachXBT’s investigation.

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