The company says it will be able to identify XMRs used for illicit purposes to support criminal investigations.
CipherTrace files patent application for MoneroNOTÍCIAS transaction tracking tool
Crypto analysis company CipherTrace announced on Friday that it had filed two patents for a technology capable of tracking transactions for currency with a focus on Monero privacy.
In a post on its November 20th CipherTrace blog, the company said the patents would include forensic tools to exploit Monero’s transaction flows (XMR) to aid in financial investigations, statistical and probabilistic methods for scoring transactions and grouping likely portfolio owners, as well as visualization tools and ways to track XMR stolen or illegally used.
„CipherTrace’s Monero tracking capabilities will allow [Virtual Asset Service Providers] to identify when the incoming XMR may have criminal origins, allowing them to properly assess the customer’s transactions according to the required regulations,“ the blog said. „[Our] goal is to enable the detection of criminal users, thereby increasing the security and sustainability of privacy-focused currencies like Monero in the future.
Although Bitcoin (BTC) is still the preferred medium of exchange for many users in the darknet market, there has been an increasing acceptance of privacy-focused currencies like XMR. Enforcement agencies have not yet determined a reliable way to track Monero, and companies like CipherTrace have an opportunity – the company would be working on a means of tracking XMR transactions since early 2019.
CipherTrace’s CEO, Dave Jevans, told the Cointelegraph in August that the company had developed Monero’s first transaction tracking tool. This tool could support crime investigations and reduce money laundering incidents.
The company said it developed these Monero tracking tools as part of a project with the U.S. Department of Homeland Security, but it is not the only government agency looking for a way to identify XMR wallets, dates and times of transactions. In September, the IRS announced it would give a reward of up to $625,000 to anyone who could break Monero’s privacy.
The capabilities of CipherTrace’s tracking tools have not yet been confirmed. A Monero Outreach representative told the Cointelegraph in October that they would be „highly suspicious of any allegations that corporations could track Monero transactions“ and any company that did so would hardly „track the portfolios or values of any transaction“.
Monero’s price was US$123.37 at the time of publication of this article, having fallen 3.6% in the last 24 hours.