CipherTrace crypto analysis firm CipherTrace announced Friday that it has filed two patents for technology capable of tracking transactions for Monero privacy coins.

In the CipherTrace blog on November 20, the company said that the patents will include forensic tools to study Monero (XMR) transaction flows to aid in financial research, statistical and potential methods for evaluating transactions and pooling of potential portfolio owners, visualization … tools and methods for tracking stolen or otherwise use Legal to XMR.

“The tracking capabilities in Monero CipherTrace will enable [virtual asset service providers] to determine when incoming XMRs may be of criminal origin, so that they can sufficiently risk customer transactions according to the required rules,” the blog said. “Our goal is to enable detection of criminal users, thus enhancing the security and resilience of sensitive currencies like Monero in the future.”

While Bitcoin (BTC) remains the preferred medium of exchange for many users of the darknet market, privacy coins such as XMR are gaining in popularity. Law enforcement has yet to come up with a reliable way to track Monero, and companies like CipherTrace have an option – the company is said to have been working on XMR transaction tracking tools since early 2019.

Dave Jevans, CEO of CipherTrace, told Cointelegraph in August that the company is developing the first Monero transaction tracking tool. Such a tool can support criminal investigations and reduce money laundering.

The company said it developed these Monero tracking tools as part of a project with the US Department of Homeland Security, but the latter is not the only government agency looking for a way to determine XMR wallets and transaction dates and times. In September, the IRS announced that it would award profits of up to $ 625,000 to anyone who can hack Monero.

The capabilities of the CipherTrace trace tools have not yet been confirmed. A Monero Outreach spokesperson told Cointelegraph in October that they would be “extremely skeptical about claims that companies can track Monero’s transactions”, and any company that does so is unlikely to “track portfolios or transaction amounts.”

Monero’s price was $ 123.37 at the time of publication, and is down 3.6% in the past 24 hours.

Source: CoinTelegraph

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