February 3, 2021
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As reported by Bitcoin.com, Ciphertrace has filed two patents for tracing and identifying illicit Monero transactions. Ciphertrace reportedly began creating these tools in collaboration with the US Department of Homeland Security in early 2019.
The patents include forensic tools to explore Monero transaction flows to assist in financial investigations, transaction visualization and tracking tools to trace stolen or illicit Monero currencies, and other methodologies for gaining intelligence about transactions that rely on third-party nodes.
The firm’s aim is to increase the safety and sustainability of Monero, providing law enforcement with the tools they need to investigate Monero transactions that may relate to criminal activity.
According to CoinDesk, Monero is notoriously difficult to track and what crypto-experts refer to as a “privacy coin”, providing users with anonymity when making blockchain transactions.
Proponents of Monero contend that Ciphertrace’s ability to track these transactions may not be as strong as they claim.
Authors: Mark Leonard and Emma Baumann