Cryptocurrency and blockchain intelligence firm CipherTrace says its new toolset has the ability to trace transactions made using the privacy cryptocurrency Monero.
At the request of the United States Department of Homeland Security (DHS), the intelligence firm for cryptocurrencies, y blockchain, ciphertra by, developed a series of tracking tools that allow DHS to track transactions made with Monero, to support the department's investigations of financial crimes and other illicit activities.
Although Monero (XMR) developers boast that the cryptocurrency is quite difficult to trace, thanks to its high level of privacy and the implementation of particular technologies, it seems that the intelligence firm CipherTrace found a way to trace these transactions through the flow of money. According to the release, during the agreement between CipherTrace and the DHS, a set of forensic tools was developed that government agencies can apply in their criminal investigations. The tools developed by CipherTrace allow the exploration of transactions made with Monero to assist in the development of these investigations.
Also included in this set of tracking tools are search, exploration, and transaction visualization tools for Monero money flows, allowing for viewing and tracking stolen coins or coins linked to illicit activities. Similarly, although these tools were developed for the Department of Homeland Security and other government entities, CipherTrace assures that the tools are safe and secure. exchanges, houses of custody, markets OTC and more, they will be able to benefit from these tools to verify that the coins they receive or exchange are not contaminated or have been used illegally.
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Monero, the popularity of the privacy cryptocurrency
Monero (XMR) is considered the second most used cryptocurrency by malicious actors to carry out and finance illicit activities on the darknet, a feature that has earned it several detractors since its launch. According to a study made by The block, 45% of darknet markets use Monero to hide and obfuscate illegal transactions. That is why the United States Department of Homeland Security is interested in developing a series of tools that allow it to identify and track these types of private transactions.
Let's remember that Monero (XMR) uses advanced cryptography techniques to achieve the level of privacy it offers in its transactions. For example, the ring signatures o circle of signatures (Ring Signature)Monero (XMR) is a mixing system that links a sender's address with a large group of other addresses. Thus, trying to identify, locate or trace a particular address among that set of addresses is almost impossible to do. That is, it is almost impossible to identify the true sender of a given transaction. Similarly, Monero (XMR) also integrates additional functions such as secret addresses that are generated for each transaction, a function that makes it even more difficult for transactions to be traced by a third party other than the sender or the receiver.
For his part, referring to the tools developed for tracking transactions with Monero, the Executive Director of CipherTrace, Dave Jevans, I affirm that:
“Our R&D team worked for a year developing techniques to provide financial investigators with analytical tools. There is still much work to be done, but CipherTrace is proud to announce the world’s first Monero tracing tool. We are grateful for the support of the Department of Homeland Security’s Science and Technology Directorate on this project.”
So, although the firm already has the ability to track transactions made with this cryptocurrency, the development and optimization of these tools is still in process.
About CipherTrace
CipherTrace is a leading cryptocurrency and blockchain intelligence company that develops end-to-end risk monitoring and transaction tracking solutions for over 87% of digital assets in the world, in compliance with AML regulations. The firm aims to protect financial institutions from the risk of money laundering through cryptocurrencies.
Likewise, by developing comprehensive solutions and tools for transaction tracking, CipherTrace seeks to contribute to the growth and development of the cryptocurrency and digital asset economy in a safe and reliable manner, complying with current regulations at a global level.
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