Monero tracking possible with new CipherTrace solution
Crypto analytics firm CipherTrace has revealed that it has applied for two patents on technology that is capable of tracing transactions on privacy blockchain Monero.
CipherTrace stated in its blog further that the patents include forensic tools that can explore the Monero ecosystem. The tools would help track transactions and assist law enforcement agencies for financial investigations.
CipherTrace filed their second patent application on Monero tracing techniques. Nobody can deterministically trace Monero transactions yet. But this lays the groundwork for meaningful results particularly for tracing large scale thefts & crimehttps://t.co/pNH9Nstw7j— Dave Jevans (@davejevans) November 21, 2020
It would also have the capacity to locate the flow of illegally used XMR and identify wallet owners. Ciphertrace believes that with the deployment of its tracking tools it would be able to ensure that privacy coins like Monero are sustainable in the future.
[Our] goal is to enable the detection of criminal users, therefore increasing the safety and sustainability of privacy coins like Monero in the future.
Monero Increasingly used by the Dark Web
Monero has become one of the most popular currencies used for exchange by the Dark Web market users. This is because it is one of the few coins that cannot be tracked and is also easy to buy and sell.
This has posed a dilemma to law enforcement agencies globally as cyber criminals had resorted to demanding Monero (XMR) during hack attacks. The US government had issued a bounty of $650,000 to anyone that could devise a way to track Monero.
CipherTrace is looking to become a major player in this market by creating a tool that would track the privacy coin. Despite Ciphertrace claims, there is still widespread doubt about the capabilities of its tools.
There have been doubts that the forensic company has the technology to break down one of the top anonymous protocols. This is because it would require complex algorithms to be able to identify XMR wallets, transaction dates and times.
Nevertheless, the filing of the patent by the company could suggest that a workable solution is close to fruition. Monero privacy qualities have affected the coin in recent months as several exchanges have delisted it in an effort to satisfy regulatory requirements.