A broad class of digital tokens on decentralized platforms that represent value or grant platform access. Often introduced through token sales, they may serve as utility or investment instruments, tradable within blockchain ecosystems.
Main/
Virtual Tokens
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Code
IN0012
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Name
Virtual Tokens
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Version
1.0
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Category
Crypto & Other Digital Tokens
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Created
2025-02-04
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Modified
2025-04-02
Related Techniques
- Criminals create or acquire newly minted tokens on less regulated networks and use them for bridging to add layers to the transaction path.
- The repeated minting, swapping, and disposal of tokens across blockchains force investigators to track myriad token movements, each representing a separate ledger entry.
- By introducing lesser-known or custom tokens, criminals exploit limited oversight and heightened complexity, further obscuring the illicit fiscal trail.
- Criminals orchestrate token trades among related wallets at contrived prices, artificially raising or lowering the perceived token value.
- This valuation distortion conceals the actual source of funds, as 'profits' from future token sales appear to stem from typical market appreciation.
- Criminals leverage blockchain-based tokens used in gaming ecosystems, transferring them through decentralized exchanges or bridging services that are not subject to robust KYC.
- By converting items or in-game wealth into these tokens, then trading or swapping across multiple platforms, criminals create complex value flows that mask the illicit origin.
- Limited oversight on third-party token services enables layering and cross-platform asset movement with minimal traceability.
- Criminals exploit a wide range of virtual tokens to rapidly convert illicit proceeds among multiple formats, breaking transaction continuity.
- Decentralized exchanges and cross-chain protocols allow swift swaps and bridging that hinder law enforcement's attempts to trace fund flows.
- The pseudonymous nature of token transactions, coupled with limited regulatory oversight, makes it challenging to link addresses to real identities.