What do you think when you hear the term cryptocurrency? Privacy, security, and anonymity, right? However, this is not always the case. Cryptocurrency transactions are quite transparent, thus making them easy-to-trace.
CipherTrace, a cryptocurrency intelligence firm offers another example. It has come up with a tool that can be used to trace transactions made with Monero. The tool will trace and analyze wallet addresses, exchange information, and smart contracts.
The chief financial analyst John Jefferies, mentioned that the company can trace more than 800 cryptocurrencies, and help agencies investigate crypto-related crimes. If this is true, then it can be breaking ground, as we have already seen such crimes ($1.4 billion in terms of thefts, hacks, and fraud).
Aide from Bitcoins, Monero (XMR) is another cryptocurrency used to conduct these crimes. Until now, no tool was available for tracing these coins, so it’s understandable the storm it has caused in the community. CEO Dave Jevans is affirmative with the applicability of this tool. However, it has met with skepticism.
The tool developed by the company will be used by the U.S. Department of Homeland Security for this purpose. It should be noted that this tool can not be classified as an anti-money-laundering tool just yet. However, it is suitable for solving ransomware cases. This is good news for the currency too, as many exchanges have delisted it for not complying with security and other standards.