ZachXBT, a crypto detective who has recently issued warnings for numerous altcoins, has now warned against a new platform and altcoin.
Accordingly, ZachXBT claimed that imToken and Tokenlon are hubs for illegal money laundering.
On-chain researcher ZachXBT has identified imToken and the decentralized exchange (DEX) Tokenlon as centers for illicit money laundering.
Tokenlon claimed that the vast majority of its trading volume originated from illicit money laundering activities such as fraud, human trafficking, investment fraud, and Chinese underground markets.
According to ZachXBT, Tokenlon has virtually no legitimate trading volume outside of Southeast Asia, and a large portion of its operations are linked to illicit fund flows.
He also warned about possible future actions against Tokenlon and ImToken, naming the platform’s co-founder.
He said that imToken co-founder Ben He should be sentenced to life imprisonment.
ZachXBT also argued that Chinese “whale” exchanges such as Butter Network, HiFiSwap, and SWFT, suspected of being involved in illicit fund flows, should be prioritized for sanctions and face heavy penalties for their alleged involvement in the criminal activity.
Following ZachXBT’s announcement that it would take action against DEX Tokenlon, Tokenlon’s native token, LON, dropped by approximately 8%.
*This is not investment advice.