ZachXBT Escalates Tokenlon Allegations: 57-60% Swaps Linked to Scams, Trafficking

Blockchain sleuth ZachXBT has intensified scrutiny on DEX Tokenlon, alleging 57-60% of its 2022-23 swaps involved scam-linked addresses from romance scams, human trafficking, investment fraud, and underground markets, following a victim report of 270 ETH routed there. This builds on his May 4 exposé tracking over $100M in suspicious romance scam flows via Tokenlon and imToken wallet since early 2025, highlighting DeFi AML gaps amid Chainalysis' 2024 illicit activity records. Tokenlon denies custody or wrongdoing, emphasizing traceable on-chain txs, but blacklists by exchanges and looming MiCA rules amplify regulatory risks, potentially disrupting ETH/BTC liquidity and denting BTC sentiment.