Digital tokens on a blockchain that represent ownership or profit participation in real or financial assets, often regulated under securities laws. They can be traded on specialized or regulated markets, enabling fractional ownership of assets such as shares, bonds, or real estate, and offering holders tangible investment stakes.
Main/
Security Tokens
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Code
IN0009
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Name
Security Tokens
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Version
1.0
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Category
Securities & Investment Vehicles
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Created
2025-02-04
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Modified
2025-04-02
Related Techniques
- Digitized securities on blockchain platforms can be subjected to the same manipulative tactics as traditional securities, including pump-and-dump schemes and wash trading.
- Limited regulatory oversight on certain token exchanges facilitates orchestrated trading among linked accounts, artificially influencing token prices and volumes.
- By converting illicit funds into manipulated security token profits, perpetrators legitimize and integrate proceeds into a seemingly lawful investment process.
- Criminals exploit specialized digital securities exchanges by placing identical buy and sell orders for the same token, layering proceeds under the guise of routine trading.
- The tokenized nature of these assets allows rapid mirrored trades, maintaining minimal net position changes while obscuring the underlying illicit fund flows.