Crypto Laundering Allegations Point to Lazarus Group Through Garden Finance, According to ZachXBT's Claims
In a shocking revelation on June 21, 2025, blockchain investigator ZachXBT alleged that a significant portion of Garden Finance's recent earnings were generated from laundering cryptocurrency funds stolen in the Lazarus Group-linked Bybit hack.
The Bybit hack, which occurred on February 21, 2025, saw over 401,000 ETH, equivalent to approximately $1.4 billion at the time, being drained from the platform. The hack was attributed to North Korea's Lazarus Group, who exploited a cold wallet to carry out the attack.
ZachXBT's blockchain analysis revealed that Garden Finance, described as "the fastest Bitcoin bridge," earned approximately 38.86 BTC (around $300,000) in fees over 12 days, primarily due to laundering activities related to the Lazarus Group funds. The investigation also pointed to suspicious patterns such as a single party repeatedly adding liquidity to Garden Finance's bridge using Coinbase-wrapped Bitcoin (cbBTC), raising questions about the platform's claims of decentralization and trustlessness.
In response to the allegations, Garden Finance's co-founder, Jaz Gulati, disputed the claims and asserted that some of the liquidity predated the Bybit hack. However, the debate between ZachXBT and Garden Finance remains ongoing, with other community members and developers weighing in on the controversy.
It is important to note that this article is for informational purposes only and should not be construed as financial advice. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.
Authorities and blockchain investigators have been working tirelessly to trace these illicit funds and recover them. As the role of sophisticated hacking groups like the Lazarus Group in targeting crypto platforms remains a concern, it is crucial to stay vigilant and support efforts to ensure the security of the cryptocurrency ecosystem.
[1] [Bybit Suffers $1.4 Billion Hack Linked to Lazarus Group](https://www.cnbc.com/2025/02/21/bybit-suffers-1-point-4-billion-hack-linked-to-lazarus-group.html) [2] [Investigation: Lazarus Group Behind Bybit Hack](https://www.theblockcrypto.com/post/84352/investigation-lazarus-group-behind-bybit-hack) [3] [ZachXBT Accuses Garden Finance of Laundering Lazarus Group Hack-Related Funds](https://www.coindesk.com/2025/06/21/zachxbt-accuses-garden-finance-of-laundering-lazarus-group-hack-related-funds/)
- The Bybit hack, linked to North Korea's Lazarus Group, drained over 401,000 ETH ($1.4 billion at the time) on February 21, 2025, and suspicion now falls on Garden Finance, a Bitcoin bridge, for laundering a portion of these stolen funds.
- ZachXBT, a blockchain investigator, claims that Garden Finance earned approximately 38.86 BTC ($300,000) in fees over 12 days, primarily due to laundering activities related to the Lazarus Group funds.
- Gardens Finance has disputed these allegations, but ZachXBT's blockchain analysis also revealed suspicious patterns, such as a single party repeatedly adding liquidity to Garden Finance's bridge using Coinbase-wrapped Bitcoin (cbBTC), raising questions about the platform's claims of decentralization and trustlessness.
- With the security of the cryptocurrency ecosystem at stake, authorities and blockchain investigators are working to trace and recover these illicit funds, as the role of sophisticated hacking groups like the Lazarus Group in targeting crypto platforms remains a significant concern.
