Did Garden Finance Launder People's Money? Looking at ZachXBT's Allegation

Garden Finance has recently made headlines as the self-proclaimed "fastest Bitcoin bridge," with a staggering 24,984 BTC—worth over $1.5 billion—processed across 40,000+ atomic swaps in Q2 2025 alone. This massive spike in volume and fees has positioned the protocol as a rising star in the decentralized finance space. 

But as Garden Finance celebrated its performance, blockchain investigator ZachXBT accused the platform of laundering stolen funds, including from the notorious $1.4 billion exchange’s hack. In this article, we dissect the claims, counterarguments, and community reactions that have ignited a storm across the crypto space.

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Garden Finance’s Meteoric Rise

According to Dune Analytics, Garden Finance collected over 40 BTC in fees in Q2 2025. The largest single transaction reached 10 BTC, further underscoring its rapid adoption. Founder Jaz Gulati took to social media to showcase the platform’s success, attributing the growth to organic demand and the protocol’s efficient infrastructure.

However, this surge has drawn more than admiration. In what’s now a trending controversy, ZachXBT alleged that more than 80% of the recent fees were the result of money laundering operations, with alleged ties to Chinese actors linked to North Korea’s Lazarus Group.

ZachXBT’s Allegations: A Closer Look

ZachXBT, widely known for uncovering shady practices in crypto, claimed on X that Garden Finance had become a major laundering channel for funds linked to the exchange hack and earlier exploits, including the WazirX incident. He alleged that one actor was repeatedly topping up Garden’s cbBTC liquidity from Coinbase while simultaneously routing stolen funds through the protocol.

He questioned Garden’s decentralization, calling it a “fake decentralized bridge,” and noted that large swaps—especially after the cap was raised to 10 cbBTC—were being fulfilled by a single, potentially complicit entity.

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Gulati’s Defense and the Community Divide

In response, Gulati dismissed the allegations as baseless, referring to a Q4 2024 post showing the receipt of 30 BTC well before the exchange’s hack occurred. He emphasized that the platform’s growth was not driven by illicit activities.

Yet ZachXBT wasn’t swayed. He pointed out that warning signs had been raised as early as April 2025. Moreover, he argued that even if hacks occurred after the platform received funds, it should have implemented mechanisms to block questionable transactions or, at the very least, not profited from them.

Community Weighs In

The debate intensified when James Scaur, another user, entered the conversation to defend Gulati. Scaur suggested the liquidity pattern followed a Pareto distribution—one provider handling most of the volume doesn’t necessarily imply centralization or collusion.

Still, ZachXBT continued to press, highlighting that Garden’s mempool activity was unusually easy to track due to the lack of volume outside exchange-related flows. He argued that if Garden couldn’t prevent laundering, it should return associated fees and disable high-volume swaps.

He also claimed that a significant portion of Garden’s fee revenue came not from organic usage, but from an airdrop farming campaign in early 2024.

What Comes Next?

As accusations mount and public scrutiny grows, Garden Finance faces a critical juncture. The situation could invite further investigation—both by on-chain analysts and potentially regulators. Whether ZachXBT’s allegations hold up under deeper forensic analysis remains to be seen, but they’ve already cast a long shadow over the platform’s image.

For now, Garden Finance must decide whether to embrace full transparency or risk being blacklisted in the court of public and legal opinion.

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Conclusion

Garden Finance’s stunning performance in Q2 2025 has now been eclipsed by serious laundering allegations from one of crypto’s most trusted investigators. While the platform’s founder continues to deny wrongdoing, the evidence presented by ZachXBT raises significant concerns about decentralization, compliance, and transparency. As the debate rages on, the future of Garden Finance hangs in the balance—caught between explosive growth and explosive allegations.

FAQs

What is Garden Finance?

Garden Finance is a decentralized protocol that facilitates atomic Bitcoin swaps across chains, branding itself as the fastest Bitcoin bridge.

Who is ZachXBT?

ZachXBT is an independent blockchain investigator known for exposing scams, laundering, and fraudulent activity in the crypto ecosystem.

Is Garden Finance under legal investigation?

As of now, there is no public confirmation of a formal investigation, though the allegations could attract regulatory attention.

What does Garden Finance say about the accusations?

Founder Jaz Gulati denies all claims, calling them baseless and pointing to pre-hack transactions to support his stance.