In a significant revelation, cryptocurrency investigator ZachXBT has uncovered that over 25% of the transaction volume on Garden Finance is associated with stolen funds. This development follows a recent exploit that drained more than $10.8 million from the platform, raising serious concerns about its operations, according to CryptoNews.
The breach, which affected multiple blockchain networks, has drawn attention to Garden Finance’s vulnerability and its alleged role in facilitating illicit activity. ZachXBT’s investigation highlights the platform’s involvement in processing funds from major hacks, including the Bybit exploit and the Swissborg incident. Despite the severity of the situation, Garden Finance has yet to make a public statement, although they reportedly offered a 10% white-hat bounty to the exploiter in an attempt to recover the stolen assets.
Days prior to the exploit, ZachXBT criticized Garden Finance for failing to address concerns from victims seeking refunds. The investigator estimates that a significant portion of Garden’s operations involved illicit funds, with the platform profiting substantially from these activities. The criticism was particularly directed at co-founder Jaz Gulati, who had previously celebrated the platform’s growth.
Garden Finance’s history is intertwined with Ren Protocol, a platform known for facilitating large Bitcoin transactions through bridges. Founded in 2017, Ren Protocol was later acquired by Alameda Research, before being shut down following the collapse of FTX. ZachXBT’s findings suggest that Ren Protocol and its successor, Garden Finance, have been involved in laundering over $540 million, with significant amounts traced back to North Korean operations.
Further investigations reveal that over 75% of Garden Finance’s transaction volume originated from stolen funds, with substantial amounts linked to North Korean hackers. These activities have been used to fund the regime’s weapons programs, with Garden Finance allegedly acting as a conduit for converting stolen Ethereum into Bitcoin.
As the scrutiny on Garden Finance intensifies, the platform faces mounting pressure to address these allegations and enhance its security measures to prevent further exploitation.
