Cryptocurrency intelligence company CipherTrace announced on Monday that it has developed a suite of tools to track Monero (XMR) transactions. The firm’s CEO, Dave Jevans, said the firm now has mechanisms in place designed specifically for the United States Department of Homeland Security (DHS) with the intention of detecting, exploring and visualizing illicit transactions.
In a release CipherTrace claims that its developers spent a year developing forensic tools to track stolen or illegally used Monero funds. It further suggests that cryptocurrency exchanges, mutual funds and custody providers will benefit from these tools because they will be able to demonstrate that they are not accepting funds that come from illicit operations and therefore remain in compliance with the rules.
According to CipherTrace, Monero is the second favorite cryptocurrency on the darknet, after Bitcoin. He also believes that the development of tools to detect transactions is a positive thing for the future of XMR. “Analytics is crucial to the survival of privacy coins because, if they cannot assess the risks, some governments could make transactions with privacy coins extremely difficult or ban them altogether, such as Japan,” the statement added.
However, in its publication the company does not provide details to support its claims, nor does it provide evidence to show that it actually developed such tools. In fact, Justin Ehrenhofer, one of the members of the Monero community, questioned CipherTrace’s ability to track XMR as it has been able to do with other cryptocurrencies.
Ehrenhofer considers that the current announcements of the blockchain security firm are only speculation because he does not provide details to support his claims. He added that since nothing is proven, the developers of the privacy-based cryptocurrency will continue working to improve the properties of the cryptoactive.
Community does not doubt the privacy of Monero
“There is no reason to doubt the privacy of Monero until proven otherwise.”, he pointed one of the many XMR community members who left comments on Reddit and Twitter around the possibility of Monero now being trackable. Many point out that Dave Jevans and his team have long been unaware that there are tools for the analysis of the Monero blockchain, and that even these can be used easily and for free.
“What can be stated without evidence can also be ruled out without evidence,” said another user. For his part, Riccardo «Fluffypony» Spagni, lead developer of Monero, wrote on Twitter that CipherTrace’s announcement is nonsense: “You cannot deduct Monero addresses even if you know the funds originated from a particular transaction. I’m very skeptical that they created more than just a visual block explorer. “
Later Jevans answered that right now It cannot disclose all future plans or methods related to its tracking tools.
A recently published CriptoNoticias article details that a privacy-based cryptocurrency like Monero uses a method known as ring signatures, which allows a set of transactions to be mixed together to hide the origin of the sender.
Specifically, to guarantee the privacy of Monero, the sender’s public key and others extracted from the blockchain are used, so that all the public keys of the “ring” are likely to be the possible signers (who prove ownership) and Therefore, it becomes difficult to trace a specific transaction. However, there are those who are trying.
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CipherTrace claims to be able to track Monero transactions, but not everyone believes it