ZachXBT: Over 87% of Funds Inflowing into Hyperliquid Core Money Laundering Service FreedomXMR Linked to Illegal Activities

On October 20, on-chain investigator ZachXBT stated that FreedomXMR (FXMR), a centralized money laundering service that appeared on Hyperliquid Core (HL Core) in August 2026, had more than 87% of its inflows directly linked to illicit activities. An investigation into historical inflows exceeding $10,000 revealed that over $20 million could be directly traced to ransomware, security exploits, malware, and social engineering incidents, involving multiple theft events such as DCENT Wallet, Fetch.ai, Axelar, and Gamdom.

FXMR administrators primarily sourced Monero (XMR) liquidity through KuCoin, with related deposit transactions exceeding 3,000. The FXMR token listing was secured in July 2026 for 518.28 HYPE (approximately $28,000). Currently, several centralized money laundering services, including b1exch, have been accused of exploiting the permissionless nature of the network, and related data has been submitted to the Hyperliquid team.