CipherTrace announces Monero transaction-tracing tools for government investigations
CipherTrace files patent for technology claiming to trace Monero transactions, reinforcing Bitcoin's transparent ledger as feature for regulators.
On August 31, 2020, CipherTrace announces Monero transaction-tracing tools for government investigations. CipherTrace files patent for technology claiming to trace Monero transactions, reinforcing Bitcoin's transparent ledger as feature for regulators.
If CipherTrace's technology actually worked as claimed, it would represent a major breakthrough in blockchain forensics and raise questions about whether any cryptocurrency could maintain privacy against determined analysis. For Bitcoin's ecosystem, CipherTrace's Monero claim was relevant because it highlighted the tradeoffs between privacy and regulatory acceptance.
Monero's strong privacy features had made it popular among users who valued financial privacy but also made regulators and law enforcement deeply suspicious of it. Several exchanges had delisted Monero due to concerns about regulatory compliance and potential liability for facilitating money laundering or other illegal activities.