Renowned cryptocurrency analytics firm CipherTrace within its recent official announcement revealed that it had filed two patents for technology capable of tracing transactions for privacy coin Monero.
Within an official web-blog from CipherTrace, the firm added that the patents would come with forensic tools to explore Monero [XMR] transaction flows to help in financial investigations, statistical and probabilistic methods for scoring transactions and clustering likely wallet owners, & visualization tools and ways to race stolen or illicitly used XMR.
“CipherTrace’s Monero tracing capabilities will permit [Virtual Asset Service Providers] to spot when inbound XMR may have criminal origins, permitting them to adequately risk rate customer transactions per any required regulations,” the blog added.
“Our goal is to enable the detection of criminal users, therefore increasing the security and sustainability of privacy coins like Monero within the mere future.”
While Bitcoin [BTC] still remains the well-liked medium of exchange for several dark web market users, there has been increasing acceptance for privacy coins like XMR. Enforcement agencies haven’t yet determined a reliable means to trace Monero, and firms like CipherTrace have a chance – the firm has reportedly been performing on a way to trace XMR transactions since 2019.
Earlier in August, CipherTrace CEO Dave Jevans added that the firm developed the primary tool for tracking Monero transactions. Such a tool could potentially support investigations of crimes and reduce incidents of money laundering activities.
The firm has stated it developed these Monero-tracing tools as a part of a project with the United States Department of Homeland Security, but the latter isn’t the sole agency trying to find how to spot XMR wallets, transaction dates, and times. Also earlier in September, the IRS announced that it might offer a bounty of up to $625k to anyone who can break Monero privacy protocols.