In a startling revelation shaking the crypto landscape, ZachXBT, a well-known blockchain investigator, has accused Bitcoin bridge Garden Finance of facilitating illicit activities. Allegedly, over 80% of Garden Finance’s fees are linked to crypto laundering, casting a shadow over the project’s claims of decentralization and transparency.
Allegations and Implications
ZachXBT’s allegations are not merely whispers in the digital wind; they bring into question the very integrity of Garden Finance’s operations. According to his findings, a staggering majority of the platform’s transaction fees are tied to laundering activities. This discovery has ignited a flurry of discussions across crypto forums and social media platforms, where enthusiasts and critics alike are dissecting the implications.
“Garden Finance appears to be more of a centralized entity than it lets on,” ZachXBT commented. “Their narrative of decentralization doesn’t hold up when you consider the overwhelming percentage of fees linked to questionable sources.” Such statements have heightened concerns among users who prioritize transparency and decentralization in their crypto dealings. This sentiment echoes the growing interest in decentralized finance solutions, as seen in Bitcoin DeFi Is Taking Root on Sui—Here’s How It Works.
The Ripple Effect on the Crypto Community
The allegations against Garden Finance couldn’t come at a more precarious time for the cryptocurrency market, which has been navigating turbulent waters throughout 2025. Bitcoin itself has experienced a rollercoaster year, with prices fluctuating wildly as regulatory pressures mount across global markets.
For crypto investors, the news is a stark reminder of the need for due diligence. “It’s crucial for investors to dig deeper into the operations of platforms they engage with,” said Laura Chen, a blockchain analyst with CryptoInsights. “The allure of decentralization can sometimes mask underlying issues.”
Historical Context and Future Concerns
Garden Finance, known for its promise of seamless Bitcoin bridging, has been a significant player in the decentralized finance (DeFi) space. However, the recent accusations have placed a magnifying glass on its operations, raising concerns about the broader implications for DeFi projects that tout decentralization as a core value. This is particularly relevant as new projects like Bitcoin DeFi Project Elastos Debuts BTC-Backed Stablecoin BTCD continue to emerge, emphasizing the need for transparency and trust.
Historically, the cryptocurrency industry has grappled with issues of security and legitimacy. From the infamous Mt. Gox hack to more recent exploits, the sector is no stranger to controversy. The current situation with Garden Finance adds another layer of complexity to the ongoing narrative about the safety and reliability of cryptocurrency platforms.
Moving Forward: What’s Next?
As Garden Finance faces mounting scrutiny, the broader crypto community is left to ponder the future of decentralization. Will this episode lead to more stringent oversight and regulatory measures? Or, perhaps, a renewed focus on enhancing the transparency and accountability of DeFi projects?
For now, Garden Finance has yet to issue a comprehensive response to the allegations. The coming weeks will likely see increased pressure on the platform to address these claims and restore confidence among its user base.
The unfolding situation serves as a reminder—albeit a sobering one—of the challenges facing the crypto world as it continues to evolve. The implications of ZachXBT’s findings are still unraveling, leaving the community with more questions than answers. And as the dust settles, one thing remains clear: the quest for a truly decentralized and transparent crypto ecosystem is far from over.
Source
This article is based on: ZachXBT slams Bitcoin bridge Garden Finance for laundering hacked funds
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Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
