One of the major reasons most people use digital assets is mainly because they can carry out anonymous transactions. Even at that, the anonymity varies according to the different digital assets. Privacy coins like Monero and Zcash are coins used to carry out a deeper level of anonymous transactions.
However, it looks like anonymous transactions using the privacy coins would no longer be anonymous anymore. CipherTrace, a crypto analysis firm, has announced that it has submitted two patents for a new technology that will help track transactions carried out using Monero.
CipherTrace says it wants to use the new technology to eradicate illegal activities
In a blog post released by the analysis firm on November 20, the firm said that the patents filed included a forensic tool that would help look into the flow of transactions made with Monero. In the statement, the firm said that it wants to use this patent to help law enforcement in financial investigations.
The firm said that the technology would assist investigators in scoring transactions using statistical and probabilistic methods. The technology also possesses a tool that will look into clustering wallets owners and as a visualization tool that will be used to track Monero that are obtained illegally or stolen. “Our new technology will allow crypto exchanges to identify any Monero that is coming into a wallet from an illegal source and will ensure that that they reduce the risk associated with consumers transactions as the law requires it,” CipherTrace said.
Furthermore, the analysis platform said that it wants to use the new technology to detect malicious actors in the crypto community, especially those that carry out their activities using Monero because of its anonymous ability. “We want to use this new technology to reduce crime rate that is carried out using privacy-focused like Monero and increase the safety and sustainability of the digital asset in the future,” CipherTrace said.
American law enforcements desperately wants to break Monero
While everyone in the crypto community still prefers Bitcoin as the best mode of exchange, major users in the darknet markets have shifted to privacy-focused coins like Monero. Since law enforcements are not in an advantaged position to develop a means to check coins like Monero, it gives CipherTrace an edge to create such technology.
Notably, CipherTrace has been working on the technology since 2019. In a report published by various news outlets in August, the CEO of CipherTrace, Dave Jevans, said that the firm is the first in a long list of companies trying to make the technology to track Monero.
In his statement, the CEO said that the tool would be useful for authorities as they can use it to investigate criminals’ activities and eliminate money laundering issues. In its statement, CipherTrace said it was working hand in hand with the US Department of Homeland Security while developing the technology.
Still, as it stands, they are not the only ones trying to identify the core details behind Monero transactions. The Internal Revenue Service made an announcement in September where it announced that it would offer anyone that can break Monero a whooping cash reward of $625,000.