ZachXBT: 87% of Funds Flowing into FXMR Money Laundering Service Linked to Illegal Activities

ZachXBT discovered that a money laundering service called FreedomXMR (FXMR) appeared on Hyperliquid Core in August 2026, with over 87% of its incoming transaction volume directly related to illegal activities. ZachXBT reviewed transactions exceeding $10,000 in historical inflows to FXMR and found that over $20 million in funds could be traced back to ransomware, exploit attacks, malware, and social engineering incidents, including attacks related to DCENT Wallet, Fetch.ai, and Axelar in September 2026, as well as unnamed ransomware payments and the Gamdom attack in October. ZachXBT pointed out that FXMR administrators acquired Monero (XMR) liquidity through KuCoin, with related addresses depositing funds to KuCoin over 3,000 times, suggesting that its operational model may be similar to that of Wagyu's exchange model. The FXMR token code was acquired through an auction on Hyperliquid on July 27, 2026, for a price of 518.28 HYPE, approximately equivalent to $28,000 at the time. ZachXBT noted that Hyperliquid Core had previously seen other money laundering services like b1exch, which operated using permissionless on-chain mechanisms, and has shared spreadsheets of related data with the Hyperliquid team.

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