On-chain investigator ZachXBT has publicly accused decentralized exchange aggregator Tokenlon of processing a large share of trading volume tied to illicit activity, escalating a compliance debate that has increasingly reached crypto infrastructure providers rather than just end users. The claims, made in a series of posts on X, allege links between Tokenlon flows and funds associated with pig-butchering scams, human trafficking, investment fraud, and Chinese underground marketplaces. Tokenlon had promoted its ETH/USDT swap service in a separate X post, highlighting pricing, fill rates, MEV protection, and self-custody, but the company did not appear to respond in the source material provided.
ZachXBT Alleges Illicit Flows on Tokenlon
The most direct allegation came after Tokenlon’s April 29 promotional post on X, in which the platform described itself as offering “the best price across DEXs” with “up to 1,000 ETH per single swap,” a “99.8% fill rate,” and “full self-custody.” Responding beneath that post, ZachXBT challenged the exchange’s volume profile in unusually sharp terms. “Why does the majority of your volume originate from pig butchering , human trafficking, investment fraud, and Chinese illicit marketplaces?” he wrote. “Your co-founder Ben He deserves to spend the rest of his life in prison.”
He then signaled that he intended to continue pursuing the matter. In the same thread, ZachXBT wrote: “In the future I plan to initiate attacks against Tokenlon & ImToken. War time mode.”
ZachXBT added further context in replies to other users, including one account that claimed a friend’s mother had lost 270 ETH in a scam and that the funds were later sent to Tokenlon. ZachXBT responded, “so many similar stories from victims sadly (also they claim to be decentralized when they’re not).”
Enforcement Pressure Builds Around DEX Claims
Beyond Tokenlon, ZachXBT broadened his criticism to a wider group of platforms he said should face regulatory or legal scrutiny. In another X post, he wrote, “Offshore ‘big boss’ Chinese exchanges, Butter Network, HiFiSwap, Bridgers /SWFT, Tokenlon must be aggressively targeted for their crimes.” He separately said that “multiple platforms” he associates with illegal fund flows should be prioritized for enforcement.
The posts suggest that, at least in some specialist circles, the allegations are not entirely new. Replying to another X user who said Tokenlon had appeared as an indicator in tracking pig-butchering and Chinese illicit funds, ZachXBT wrote, “Few understand. Meanwhile in smaller compliance circles it’s well documented.” That statement indicates he views the issue as established among certain compliance professionals, but he did not publish the underlying documentation yet.
AI Transparency Note: This article was prepared with the assistance of an AI system based on the sources listed and was reviewed, edited, and approved by a human editor before publication. All quotes, data points, and factual claims are intended to be grounded in the cited source material; however, errors cannot be ruled out entirely.
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