Directly under one of the project’s promotional posts, crypto investigator ZachXBT publicly questioned why most of the exchange’s volume allegedly comes from scam networks and illegal markets. He called Tokenlon’s co-founder someone who deserves prison time and said he intends to launch a public campaign against both the exchange and its affiliated imToken wallet.
These accusations are not baseless — according to the analyst’s thread, they are backed by research from Norwegian forensic firm Chainbrium, along with other documents. Based on those findings, 57–60% of all Tokenlon swaps in 2022–2023 were allegedly linked to addresses tied to fraudulent networks.
Victims reportedly sent funds in ETH or USDC through Tokenlon, where those assets were converted into USDT or DAI before being moved to centralized deposit accounts, masking their original source.
“Tokenlon has virtually no real volume outside Southeast Asia, and a significant share of its activity has long been associated with illicit flows, with the situation only getting worse since 2022. This has been documented for years within compliance circles,” the expert added.
Specific stories from alleged victims are already beginning to surface in the thread. ZachXBT said he is seeing more cases like these and argued that the exchange presents itself as decentralized when, in reality, it is not.