The Bitcoin bridging application, Garden, recently announced an impressive milestone. It has processed $2 billion in bridged tokens. However, the celebration was quickly overshadowed by serious accusations. Crypto investigators, notably ZachXBT, are alleging massive Garden app money laundering
The $2 billion milestone was celebrated on social media by Garden’s founder, Jaz Gurati. Almost immediately, the well-known on-chain investigator ZachXBT responded harshly. He alleged that over 25% of the total volume on the platform comes directly from criminal actors. This would mean more than $500 million in stolen funds processed by the service. The controversy intensified due to a key operational decision. Garden recently increased its swap limit to 10 BTC. This change reportedly made the platform attractive for large illicit operations. Criminals could move over $1 million in a single transaction. ZachXBT claims that the Garden team deliberately ignores the victims.
The on-chain investigator was clear in his criticism. ZachXBT differentiated this case from other crypto mixers. He mentioned that services like Tornado Cash were genuinely decentralized. Conversely, Garden operates in a much more centralized manner, according to the sleuth. Security researcher Tayvano reinforced these concerns, going a step further. She suggested direct connections to North Korean (DPRK) hackers actively using the platform. Tayvano had a brief altercation with Gurati. She accused him of not taking user safety or regulatory compliance seriously.
Will Garden Face Real Consequences for the Illicit Funds?
This public dispute highlights a serious problem in the sector. The power of community watchdogs seems limited without decisive regulatory action. ZachXBT publicly expressed his hope that “a government” would imprison the Garden team. However, the current regulatory landscape is complex and slow. In the United States, for example, a reduction in strict crypto enforcement is perceived. Furthermore, international police agencies often take years to investigate and dismantle illegal cross-border operations. This creates a vacuum that malicious actors can exploit.
The controversy places Garden under intense public scrutiny. Despite the noise generated by on-chain detectives, the real outcome remains uncertain. If the allegations about the Garden app money laundering are accurate, the platform could continue operating without major consequences in the short term. The digital economy continues to face significant challenges in effective oversight. The platform’s future will depend on whether the evidence presented is sufficient to motivate an official investigation.
