ZachXBT Accuses Garden Finance of Fund Laundering

Blockchain investigator ZachXBT alleges Garden Finance laundered funds from Lazarus Group, raising concerns on June 21, 2025.

The incident highlights potential compliance challenges for DeFi projects, potentially impacting partnerships with major exchanges.

Garden Finance Earns 80% Revenue from Suspected Laundering

ZachXBT, a prominent blockchain investigator, accused Garden Finance of facilitating laundering funds tied to Lazarus Group. The allegations arise from suspicious transactions linked to a Bybit hack.

Garden Finance allegedly earned over 80% of recent fee revenue from these activities. A timeline highlights that Jaz Gulati, co-founder, recently shared the protocol’s growth data without disclosing these links.

Increased Regulatory Scrutiny on DeFi Imminent

Immediate effects include heightened scrutiny towards DeFi projects. Regulatory agencies and compliance platforms may reassess existing partnerships with protocols linked to the alleged laundering operations.

These allegations may lead to increased AML measures across DeFi platforms. Financial implications could be seen as liquidity flows potentially face new restrictions from exchanges. ZachXBT commented, “You conveniently left out >80% of your fees came from Chinese launderers moving Lazarus Group funds from the Bybit hack. Who are you building for again?”

Lazarus Group Tactics Prompt Market Instability

Previous incidents involving the Lazarus Group have seen similar patterns, resulting in market instability and blacklisting of implicated assets. U.S. agencies have previously intervened in such cases.

Market experts suggest potential escalation of sanctions similar to past events. Compliance measures may evolve, stressing the importance of thorough oversight in the DeFi sector.

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