Long considered untraceable, Monero is now coming into the spotlight, albeit reluctantly so.
CipherTrace will use several types of forensic tools to trace XMR and how transaction flows on the ecosystem occur, providing law enforcement and central banks with a powerful ally in tracing clandestine transactions and revealing where Monero is used to the detriment of public good.
In a blog post published by the company, the development team said: “CipherTrace’s Monero tracing capabilities will allow [parties] to identify when inbound XMR may have criminal origins, allowing them to adequately risk rate customer transactions per any required regulations.”
This comes as a blow to parties who have long tapped into Monero as a currency which allows them to conduct supposedly illicit operations. Yet, so far, it has been mostly Bitcoin that was used on the darknet to facilitate a number of illegal operations.
CipherTrace developed its product as part of collaboration with the US Department of Homeland Security which is spending more time and effort to investigate funding to terrorist and illegal organisations which may be using cryptocurrencies to fund their operations.
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