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Cryptocurrency intelligence firm Ciphertrace has filed two patent applications for tools and systems to track monero transactions. The company aims to enable the detection of criminal uses of private coins such as monero.
Monero tracking patents
Blockchain analytics and cryptocurrency intelligence firm Ciphertrace announced Friday that it has filed two monero tracking patents. One patent is called “Probabilistic Techniques and Methods for Tracing Monero” and the other is “Systems and Methods for Investigating Monero”.
The two patents cover a number of areas, including “Forensic tools to explore monero transaction flows to assist in financial investigations”, “Transaction visualization tools and ways to trace stolen currency or illicit coins” and “Methodologies for acquiring transaction information that rely on third party nodes “. The crypto intelligence firm described:
Ciphertrace’s goal is to enable the detection of criminal users, thereby increasing the security and sustainability of privacy coins like monero in the future.
Founded in 2015, the company has around 150 clients which are banks, cryptographic service providers, government agencies and regulators. It is funded by the United States Department of Homeland Security (DHS), its website details.
Ciphertrace began developing these tools “as part of a Department of Homeland Security project” in early 2019, the company said. “This project laid the groundwork for future implementation of entity transaction clustering, wallet identification, trade attribution and other capabilities that will provide law enforcement with even more tools to investigate monetary and address transactions. relating to criminal activity “.
The company announced in late August that it had developed DHS tools “to track notoriously difficult-to-track privacy coin monero (XMR) transactions.” However, XMR supporters disagreed.
Ciphertrace noted in Friday’s announcement that some Virtual Asset Service Providers (VASPs) are struggling to take the risk that comes with monero’s privacy capabilities, opting to remove privacy coins rather than take the additional compliance risks. Some cryptocurrency exchange platforms have removed some privacy coins such as monero to comply with guidelines issued by the Financial Action Task Force (FATF). Among them are Okex, Upbit and Shapeshift.
The blockchain analytics firm has come up with:
Ciphertrace’s monero-tracking capabilities will allow VASPs to identify when incoming XMR may have criminal origins, allowing them to properly assess customer transactions under any required regulations.
What do you think of Ciphertrace’s filing of monero tracking patents? Let us know in the comments section below.
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