Will CipherTrace Technology Kill Monero’s Privacy?

CipherTrace, a cybersecurity and analytics firm, has filed the second patent claiming it has the technology to track Monero’s transactions. The patent, the company said, is part of a United States Homeland Security project now that XMR is being used by criminals to launder money and evade paying taxes.

Details: 

Monero is one of the many privacy coins. It was the firm and has a considerable following. Distinguishing itself from Bitcoin is the ability to conceal transactions making it hard for observers to pinpoint the sender, the receiver, or even the amount sent. These techniques, law enforcers claim, makes the network a hub for all sorts of criminals. On their end, CipherTrace has filed two patents claiming to be technologies that crack the obfuscating ability of the network allowing law enforcement to track transactions and identify the sender, receiver, and other details of the hidden transaction. 

Impact on the XMR Price: 

Neutral. Until proven, CipherTrace claims will remain as speculation according to Justin Ehrenhofer of the Monero community workgroup. Also, there are risks of users flocking to the network because of the recent attention from regulators. That’s where conversion can be made. Meanwhile, Monero developers are working on an atomic swap solution with Bitcoin.

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