CipherTrace has become the first company in the world with the ability to trace Monero (XMR) transactions.
“Monero (XMR) is one of the most privacy-oriented cryptocurrencies,” said Dave Jevans, CEO of CipherTrace. “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. We are grateful for the support of the Department of Homeland Security’s Science & Technology Directorate on this project.”
The U.S. Department of Homeland Security contracted with CipherTrace for a total of $3.6 million—with $2.4 million already paid—to create the Monero tracing tool.
CipherTrace’s tool will allow its users to track stolen Monero or identify Monero used in illicit transactions and notifies digital currency exchanges when an individual is trying to send the privacy-centric coin from illicit sources to their exchanges.
Monero’s saving grace?
Monero is a privacy coin; this means that Monero is—or rather, was—fully-anonymous, untraceable, and unidentifiable. Because Monero was so anonymous, it has been delisted or banned from several digital currency exchanges and countries since it is often used as a vehicle for illicit activity—which is probably why Monero is the second most popular coin across darknet markets.
Although the Monero community is viewing the CipherTrace tool as a negative, the tracking tool might actually save—or at least postpone—Monero from its inevitable demise. Now that analytics software exists for Monero, exchanges and governments can once again potential permit Monero since there is now a way to identify the source of illicit activity taking place on the XMR network.
In terms of what the company has planned next for their tracking tool, they said: “the tools CipherTrace developed within the scope of this DHS project have also laid the groundwork for future implementation of entity transactions clustering, wallet identification, exchange attribution, and other functionality that will provide law enforcement with even more tools for investigating Monero transactions and addresses.”
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FAQs
Leaked Chainalysis video suggests Monero transactions may be traceable. A copy of the now-deleted Monero tracing video was shared with Cointelegraph, and it suggests the firm can trace XMR transactions and associated IP addresses.
Is Monero still untraceable in 2024? ›
Monero. Monero (XMR) is the undisputed king of privacy-focused cryptocurrencies. Launched in 2014, it has established itself as the most private, secure and untraceable digital currency available. Monero's advanced privacy features make it virtually impossible to trace transactions or connect them to individual users.
Is Monero really untraceable? ›
Key Points. Monero (XMR) is a secure, private and untraceable cryptocurrency known for its strong focus on privacy and anonymity. Transactions on the Monero (XMR) blockchain are confidential and cannot be traced, ensuring the privacy of its users.
Can Monero coin be traced? ›
Monero is a privacy crypto designed to confuse anyone investigating transactions. Its techniques break transactions into smaller amounts and mix them up, making them nearly impossible to trace.
How hard is it to trace Monero? ›
Is Monero Traceable by Law Enforcement or Hackers? Monero, a privacy-focused cryptocurrency, is designed to be untraceable, making it difficult for law enforcement or hackers to track transactions.
Can the government trace Monero? ›
A Finnish law enforcement agency, the National Bureau of Investigation (NBI), recently claimed that it may have found a way to trace the privacy coin Monero. However, proponents of the privacy coin have dismissed the agency's claims and insisted that the cryptocurrency is still untraceable.
How to get Monero anonymously? ›
How to Buy Monero Anonymously?
- Use a Peer-to-Peer Exchange. Utilizing a peer-to-peer exchange is a viable method to buy Monero anonymously while ensuring a secure investment process that prioritizes privacy and confidentiality. ...
- Use a Decentralized Exchange. ...
- Use a Bitcoin ATM. ...
- Use a Privacy Coin Mixer.
Monero, a leading privacy-focused cryptocurrency, emerged in 2014. It's lauded for its advanced privacy features that go beyond the standard offerings of most digital currencies. Ring Signatures, Stealth Addresses, and Ring Confidential Transactions (RingCT) are pivotal components in Monero's privacy-centric design.
Can Monero transfers be tracked? ›
Monero transactions, often touted for their privacy and security, might not be as untraceable as previously thought. A leaked and quickly deleted video from Chainalysis suggests that Monero (XMR) transactions can be tracked using 'malicious' nodes that capture details such as the crypto users' IP addresses.
Can police trace Monero? ›
Its Confidential Transaction (CT) technology enhances ring signatures and stealth addresses, making on-chain transactions using Monero's native XMR coin almost impossible to trace.
How does Monero achieve Anonymity? Monero uses the CryptoNote protocol and Ring Confidential Transactions to protect user privacy. Ring CT hides the transaction values while CryptoNote groups the sender's public key with several other keys in order to hide who actually sent the transaction.
Can you see who sent you Monero? ›
With Bitcoin, this is typically done by looking up the transaction ID, where the origin and destination addresses are shown, along with the amount transacted. Monero, however, is private: that information is not available publicly on the blockchain.
How trackable is Monero? ›
Monero transactions are confidential and untraceable.
The sender, receiver, and amount of every single transaction are hidden through the use of three important technologies: Stealth Addresses, Ring Signatures, and RingCT. Because every transaction is private, Monero cannot be traced.
What is the most untraceable crypto? ›
Unlike traditional cryptocurrencies, Monero uses ring signatures, stealth addresses, and confidential transactions to obfuscate the sender, recipient, and transaction amount. This means that transactions made with Monero are virtually untraceable, making it difficult for anyone to uncover your financial activities.
What are the weaknesses of Monero? ›
Monero has been criticized for being much less user-friendly than other cryptocurrencies—a result of its technical complexity and lack of an easy-to-install GUI.
Can IRS track XMR? ›
Given that all cryptocurrency transactions are meticulously recorded on the blockchain, these analytical tools enable the IRS to meticulously trace the transaction history of specific crypto wallets, often managing to connect these wallets with their owners' identities.
How to buy Monero without trace? ›
Purchasing Monero without KYC can be easily done via StealthEX, an instant crypto exchange that doesn't require you to verify your identity.
