To Aid US DHS investigations, CipherTrace develops Monero-tracing tool
Anonymity and privacy are the primary benefits of cryptocurrency. Yet crypto transactions are not as anonymous as some may think. This is due to the transparent nature of blockchain technology. Instead, Bitcoin (BTC) and other cryptocurrencies are pseudonymous. This is as each transaction on a blockchain network is transparent. This makes it possible to trace wallet addresses back to their source.
CipherTrace is capable of tracing several hundred cryptocurrency transactions. They do this by analyzing wallet addresses, exchange information, and smart contracts. The company is capable of tracing over 800 cryptocurrencies. They can do this to support investigations of crimes. This is hugely relevant. Cryptocurrency-related crimes during the first half of 2020 have been massive. They have already accounted for $1.4 billion worth in thefts, hack, and fraud.
Monero can now be traced?
Bitcoins have been
ranked as the prevalent crypto choice of criminals. But many darknet
transactions are conducted using the privacy coin Monero (XMR). Due to this,
law enforcement has been too interested in finding a way to trace Monero. Till
now, there hasn't been a tool capable of tracing Monero transactions.
CipherTrace has developed the first tool for tracking Monero transactions. The tool has been
in development for over a year. It will be used by the U.S. Department of
Homeland Security to trace Monero transactions. CipherTrace had a recent
contract with DHS Science & Technology Directorate. This resulted in the
development of forensic tools for law enforcement and government agencies. It
will enable them to trace Monero transaction flows for criminal investigations:
A game-changer for combating Monero-using crimes
The tools allows to track stolen Monero. It can also be used to track Monero used for illegal transactions. The tool is not suitable for Anti-Money Laundering purposes just yet. But ransomware cases involving Monero can be traced back to sources. This is notable. This is as it's been mentioned that ransomware criminals are switching from Bitcoin to Monero. It helps them to protect their identities better. The tool will allow to limit ransomeware cases. It will be limited to a couple of different crypto addresses. The exact number of transactions traced hasn't been revealed. But the tool has indeed been validated across a large number of Monero transactions.
Crypto Business World
CBW - External Analyst