{"id":42273,"date":"2026-05-05T06:57:44","date_gmt":"2026-05-05T06:57:44","guid":{"rendered":"https:\/\/cryptd.in\/zachxbt-targets-lesser-known-dex-in-fresh-allegations-over-illicit-crypto-flows\/"},"modified":"2026-05-05T06:57:44","modified_gmt":"2026-05-05T06:57:44","slug":"zachxbt-targets-lesser-known-dex-in-fresh-allegations-over-illicit-crypto-flows","status":"publish","type":"post","link":"https:\/\/cryptd.in\/cs\/zachxbt-targets-lesser-known-dex-in-fresh-allegations-over-illicit-crypto-flows\/","title":{"rendered":"ZachXBT Targets Lesser-Known DEX in Fresh Allegations Over Illicit Crypto Flows"},"content":{"rendered":"<p>Blockchain investigator ZachXBT has built a reputation for repeatedly calling out crypto platforms and entities he believes are involved in suspicious or illegal activity.<\/p>\n<p>In his latest allegation, he has turned attention to Tokenlon, a relatively lesser-known decentralized exchange with around 17,000 followers on X.<\/p>\n<h2>Tokenlon Draws Scrutiny<\/h2>\n<p>ZachXBT has <a href=\"https:\/\/x.com\/zachxbt\/status\/2051224071300653248\">alleged<\/a> that a large share of trading activity on decentralized exchange Tokenlon may be tied to illicit sources. These include romance scams, human trafficking, investment fraud, and underground markets in China.<\/p>\n<p>He also mentioned Tokenlon\u2019s co-founder, Ben He Bin, and suggested that possible future actions could be taken against Tokenlon and ImToken. In addition, the investigator also pointed to other platforms which he believes are connected to illegal fund flows, such as Butter Network, HiFiSwap, Bridgers\/SWFT, and Tokenlon, calling for them to be prioritized for enforcement attention.<\/p>\n<p>A user shared that their friend\u2019s mother was scammed out of 270 ETH, and the funds were reportedly sent to Tokenlon. In response, ZachXBT said he has <a href=\"https:\/\/cryptopotato.com\/analysis-almost-20-million-of-kucoin-stolen-funds-already-sold-through-dexs\/\">seen<\/a> many similar cases from victims. Although the platform presents itself as decentralized, he claimed that it does not fully function as one in practice.<\/p>\n<p>In response, Tokenlon <a href=\"https:\/\/x.com\/tokenlon\/status\/2051299045357048001\">acknowledged<\/a> that it is aware of the discussions regarding illicit funds on-chain and their interaction with decentralized protocols and asserted that it does not custody user funds, while adding that transactions are publicly traceable on-chain. It maintained that it \u201cabsolutely does not facilitate crime.\u201d<\/p>\n<blockquote>\n<p>\u201cWe recognize that permissionless infrastructure can be exploited. Combating this requires a \u201cunified defense\u201d across wallets, security firms, and law enforcement.\u201d<\/p>\n<\/blockquote>\n<h2>Decentralization Claims Questioned<\/h2>\n<p>Interestingly, ZachXBT cited a 2022 report by Cryptoforensic Investigators, which <a href=\"https:\/\/cryptoforensic.com\/blog\/the-prevalence-of-sha-zhu-pan-aka-pig-butchering-scams\/\">questioned<\/a> Tokenlon\u2019s decentralization claims. It explained that while platforms like Uniswap and 1inch operate fully through immutable smart contracts, Tokenlon behaves differently in practice. The report said Tokenlon, linked to the imToken wallet and imToken PTE Ltd., allows users to swap Bitcoin through its \u201cimBTC DApp.\u201d<\/p>\n<p>According to its analysis, this setup resembles a centralized OTC service rather than a true decentralized exchange. It described a process where BTC is sent to Tokenlon-controlled wallets, recorded off-chain in their system, and later converted into imBTC before being swapped for USDT. The report further alleged that imBTC functions like a centralized asset pegged to Bitcoin, with Tokenlon retaining custody of the underlying BTC, similar to how stablecoin issuers manage reserves.<\/p>\n<p>Additionally, a 53-page working paper titled \u201cHow Do Crypto Flows Finance Slavery? The Economics of Pig Butchering,\u201d first <a href=\"https:\/\/papers.ssrn.com\/sol3\/papers.cfm?abstract_id=4742235\">posted<\/a> on 28 March 2024, also found that around 57-60% of all Tokenlon swaps during 2022-23 involved addresses linked to scam networks. It claimed that victim funds in ETH or USDC often pass through Tokenlon and are later converted into USDT or DAI before reaching centralized deposit accounts.<\/p>\n<p>P\u0159\u00edsp\u011bvek <a href=\"https:\/\/cryptopotato.com\/zachxbt-targets-lesser-known-dex-in-fresh-allegations-over-illicit-crypto-flows\/\">ZachXBT Targets Lesser-Known DEX in Fresh Allegations Over Illicit Crypto Flows<\/a> se objevil jako prvn\u00ed na <a href=\"https:\/\/cryptopotato.com\/\" rel=\"nofollow\">CryptoPotato<\/a>.<\/p>","protected":false},"excerpt":{"rendered":"<p>Blockchain investigator ZachXBT has built a reputation for repeatedly calling out crypto platforms and entities he believes are involved in suspicious or illegal activity. In his latest allegation, he has turned attention to Tokenlon, a relatively lesser-known decentralized exchange with around 17,000 followers on X. Tokenlon Draws Scrutiny ZachXBT has alleged that a large share [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":42275,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-42273","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-feeds"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.5 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>ZachXBT Targets Lesser-Known DEX in Fresh Allegations Over Illicit Crypto Flows - cryptd.in<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/cryptd.in\/cs\/zachxbt-targets-lesser-known-dex-in-fresh-allegations-over-illicit-crypto-flows\/\" \/>\n<meta property=\"og:locale\" content=\"cs_CZ\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"ZachXBT Targets Lesser-Known DEX in Fresh Allegations Over Illicit Crypto Flows - cryptd.in\" \/>\n<meta property=\"og:description\" content=\"Blockchain investigator ZachXBT has built a reputation for repeatedly calling out crypto platforms and entities he believes are involved in suspicious or illegal activity. 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