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ZachXBT Targets Lesser-Known DEX in Fresh Allegations Over Illicit Crypto Flows
TL;DR
ZachXBT has accused Tokenlon, a lesser-known decentralized exchange, of facilitating illicit crypto activities linked to scams and trafficking. He suggests potential enforcement actions against Tokenlon and its co-founder, Ben He Bin.
Key points
- ZachXBT targets Tokenlon for alleged illicit activities
- Tokenlon is a lesser-known decentralized exchange
- Allegations include ties to scams and trafficking
- Ben He Bin is Tokenlon's co-founder
- Other platforms mentioned include Butter Network and HiFiSwap
Mentioned in this story
TokenlonZachXBTBen He Bin
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 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.
He also mentioned Tokenlon’s 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.
A user shared that their friend’s mother was scammed out of 270 ETH, and the funds were reportedly sent to Tokenlon. In response, ZachXBT said he has seen many similar cases from victims. Although the platform presents itself as decentralized, he claimed that it does not fully function as one in practice.
In response, Tokenlon acknowledged 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 “absolutely does not facilitate crime.”
“We recognize that permissionless infrastructure can be exploited. Combating this requires a “unified defense” across wallets, security firms, and law enforcement.”
Decentralization Claims Questioned
Interestingly, ZachXBT cited a 2022 report by Cryptoforensic Investigators, which questioned Tokenlon’s 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 “imBTC DApp.”
Q&A
What allegations has ZachXBT made against Tokenlon?
ZachXBT alleges that a significant portion of trading on Tokenlon is connected to illicit activities, including scams and human trafficking.
Who is Ben He Bin in relation to Tokenlon?
Ben He Bin is the co-founder of Tokenlon, who has been mentioned by ZachXBT in the context of the allegations regarding illegal fund flows.
What other platforms did ZachXBT identify as problematic?
ZachXBT also pointed to Butter Network, HiFiSwap, and Bridgers/SWFT as platforms potentially involved in illegal activities alongside Tokenlon.
