PEB Separation and State Migration: Unmasking the New Frontiers of DeFi AML Evasion

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• Transfer-based AML systems implicitly assume that economically meaningful value migration is sufficiently encoded in transfer-layer connectivity.technical 95%
• The assumption that value migration is encoded in transfer-layer connectivity fundamentally collapses in composable smart-contract ecosystems.technical 95%
• Principal-Execution-Beneficiary (PEB) separation is a structural mechanism where intent originators, transaction executors, and ultimate beneficiaries are functionally decoupled, undermining transfer-layer attribution completeness.method 90%
• State-mediated value migration, enforced through invariant-driven contract state transitions (e.g., AMM reserve rebalancing), bypasses explicit transfer continuity and hinders transfer-layer attribution.method 90%
• These mechanisms (PEB separation and state-mediated migration) render transfer-layer observation neither attribution-complete nor causally closed.result 90%
• Expanding transfer-layer tracing capabilities alone fails to resolve the underlying attribution ambiguity inherent in structurally decoupled execution.limitation 85%
• Under modular composition and open participation markets, PEB separation and state migration are structurally generative, implying heuristic-based flow tracing has reached a formal observational boundary.technical 85%
• A paradigm shift toward AML based on execution semantics, focusing on economic causality from atomic execution logic and state invariants, is advocated.method 90%

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