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The anonymous blockchain investigator ZachXBT has accused the decentralized exchange Tokenlon of having “dirty traffic,” explaining that a significant portion of the funds on the platform may originate from criminals.
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According to the blockchain detective, a considerable share of the trading volume on the platform is generated from funds linked to fraudulent schemes, human trafficking, investment scams, and illegal Chinese online marketplaces.
ZachXBT noted that Tokenlon has virtually no legitimate trading volume outside of Southeast Asia. The exchange does not take adequate measures to filter suspicious transactions, making it a convenient tool for cybercriminals, lamented the anonymous analyst.
In response, representatives from Tokenlon stated that they are aware of the issue concerning illicit funds within their on-chain infrastructure and assured that the platform operates as an open protocol and does not hold user assets:
“All transactions are transparent and traceable on the blockchain, and the platform does not create conditions for criminal activity.”
In light of the allegations from the author of high-profile investigations into cryptocurrency projects, the exchange’s representatives announced measures to mitigate risks for clients. The platform promises to enhance collaboration with security experts and law enforcement agencies.
Recently, ZachXBT accused the team behind the Rave project of orchestrating a “pump and dump” scheme involving the RAVE token. He claims that 90% of the total RAVE supply, which amounts to 1 billion coins, is concentrated in three Gnosis Safe multisig wallets associated with the project team, while only 24% of the tokens are in circulation, according to the blockchain investigator.
