Crypto Intelligence Firm claims Monero (XMR) tracking functions

The safety of Monero (XMR) users could soon be at risk after cryptocurrency intelligence company CipherTrace announced the creation of tools to help law enforcement agencies track transactions on the privacy-focused blockchain.

CipherTrace claims the ability to track XMR transactions

According to a press release dated Aug. 31, CipherTrace worked with the Department of Homeland Security’s science and technology to develop Monero tracing technology.

The tools will be used to aid the Department of Homeland Security’s investigation into activities related to the illegal use of XMR. Dave Jevans, CEO of CipherTrace said:

“Our research and development team spent a year developing techniques to provide analytical tools to financial investigators. There’s still a lot to be done, but CipherTrace is proud to announce the world’s first Monero tracing feature. “

The technology is said to include “search, exploration and visualization tools” for Monero transactions to be used in conjunction with CipherTraces’ “financial investigation product”. Mention is also made of the ability to identify wallets and track XMR transactions through exchanges.

CipherTrace claims the ability to track Monero transactions will benefit mutual funds, cryptocurrency exchanges, and OTC trading counters that can now list XMR without fear of accepting coins from illegal sources.

Monero use case at risk?

However, if CipherTrace’s claims are truly legitimate, such platforms would likely have little desire to list Monero in the future.

What use would a trackable version of the cryptocurrency have over any other publicly trackable cryptocurrency, given that unbreakable privacy is at the heart of Monero’s identity?

Brian Armstrong, Coinbase CEO, told Peter McCormack’s podcast audience in July that although he would personally like to see Monero on the Coinbase platform, concerns about his privacy-minded nature in the face of U.S. regulators stopped him. Armstrong said:

“A lot of it is behind the scenes conversations where [regulators] say, ‘We very much believe that you shouldn’t do this …’ ”

CipherTrace cites research showing that 45% of illegal marketplaces on the darknet accept Monero as a usable cryptocurrency.

However, the same research concluded that Bitcoin remained the currency of choice for darknet markets. Given that Bitcoin can be anonymized via third-party coin blending tools, the apparent focus on Monero as a regulatory threat vector could be seen as irrational.

SPECIAL OFFER (sponsored)
Binance Futures 50 USDT FREE Coupon: Use this link to register and get 10% off fees and 50 USDT when trading 500 USDT (limited offer).

PrimeXBT Special Offer: Use this link to register and enter the POTATO50 code to get 50% free bonus on every deposit up to 1 BTC.

Comments are closed.