On October 20, on-chain investigator ZachXBT published findings uncovering a money laundering service named FreedomXMR (FXMR), where over 87% of incoming funds were directly tied to illegal activities. The service surfaced on the trading platform Hyperliquid Core in August 2026. By tracking historical single transactions exceeding $10,000, investigators identified more than $20 million linked to ransomware, hacking exploits, malware, and online cyber fraud.
The tainted funds trace back to several notable breaches, including the September exploits of DCENT wallet, Fetch.ai, and Axelar, alongside the Gamdom hack in October. Tracing further revealed that FXMR operators sourced Monero (XMR) liquidity via KuCoin, with affiliated addresses depositing funds into the exchange across more than 3,000 transactions. The FXMR ticker itself was secured on July 27 via an auction for 518.28 HYPE tokens, valued at approximately $28,000 at the time.
Hyperliquid Core has previously seen comparable laundering services exploiting its permissionless trading framework to shift illicit capital. The tracking dossiers have now been submitted to the Hyperliquid team. The case highlights how permissionless listing mechanisms can be abused by criminal groups, serving as a reminder for ordinary market participants to steer clear of unverified liquidity channels to avoid secondary exposure to laundering operations.
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