Many cybercriminals had flocked to loving the popular privacy-focused cryptocurrency, Monero for the fact that it shades them from being easily identified by law enforcement agencies. However, this may no longer be the case as CipherTrace has informed that it has developed a Monero tracking tool for authorities in the United States.
In an announcement published on Monday, CipherTrace, a digital currency intelligence company said the development of the Monero tracking tool was a result of a contract with the US Department of Homeland Security (DHS) Science & Technology Directorate. The forensic tool will ensure an effective policing and investigation of Monero transactions.
The newly-developed Monero tracking tool will equally enable law enforcement officers and other governments bodies to visualize Monero transaction flows to catch criminals hiding behind the cryptocurrency. The will also help cryptocurrency exchanges and other financial entities spot and avoid receiving the privacy coin from illicit sources.
45% of darknet markets prefer Monero
In the announcement, CipherTrace pointed out that Monero has become the most preferred cryptocurrency amongst darknet markets just after Bitcoin. About 45 percent of the darknet markets prefer the cryptocurrency due to the user anonymity it offers, which makes it almost impossible to uncover the people behind a single transaction with the cryptocurrency.
The CEO of CipherTrace, Dave Jevans, commented:
“Monero (XMR) is one of the most privacy-oriented cryptocurrencies. Our research and development team worked for a year on developing techniques for providing financial investigators with analysis tools. There is much work still to be done, but CipherTrace is proud to announce the world’s first Monero tracing capability.”
The Monero tracking tool is hoped to go a long way to curb illicit use of the cryptocurrency. Meanwhile, the tools have integrated with CipherTrace’s Inspector financial investigations product, says the report.