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![impossiblefi Avatar](https://lunarcrush.com/gi/w:24/cr:twitter::1315920782065766400.png) Impossible Finance [@impossiblefi](/creator/twitter/impossiblefi) on x 466.5K followers
Created: 2025-07-19 02:34:08 UTC

Under the hood, what actually happens when an ERC-3643 token is transferred?

Every time a transfer is initiated, the smart contract makes a double-check:

Is the sender's wallet frozen?
Is the recipient’s wallet verified (via ONCHAINID)?
Are both parties compliant with the token’s rules (jurisdictions, caps, etc.)?

Only if all checks pass, the transfer is executed.

Otherwise: blocked. No gas wasted.

(5/11)

![](https://pbs.twimg.com/media/GwHxhelWoAAidmq.jpg)

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[Post Link](https://x.com/impossiblefi/status/1946398120700752123)