On-chain investigator ZachXBT has alleged that a significant share of trading volume on decentralised exchange Tokenlon originates from illicit sources — including romance scams, human trafficking, investment fraud, and Chinese underground markets. He named the platform's co-founder directly and warned of potential future enforcement actions targeting both Tokenlon and its parent wallet, ImToken.
ZachXBT also flagged several other platforms he claims are entangled in illegal fund flows: Butter Network, HiFiSwap, and Bridgers/SWFT. He called for these protocols to be prioritised by enforcement agencies.
The allegations are unverified at this stage, but ZachXBT's track record of on-chain attribution has previously preceded formal regulatory and law-enforcement action. Tokenlon and ImToken have not publicly responded.
CryptoSlate
CoinDesk
TheBlock