Chainalysis Won The IRS Contract For Tracking Monero: Report

Chainalysis won the IRS contract to create a tool that will lead the agency to track down privacy coins like Monero and even BTC on the Lightning Network as we are reading more in the Monero news coin.

The United States government hopes to track the privacy coins like Monero and after few days of waiting, Chainalysis won the IRS contract in order to develop a tool that will allow authorities to track down the privacy coin like Monero and the second-layer solutions like the Lightning Network. According to the official posts, Chainalysis won the contract along with the Integra FEC LLC forensic data analysis company from Texas founded in 2012 that is focused mostly on the field of traditional finance. The $625,000 contract seeks in general to deanonymize the crypto anonymization initiatives such as privacy coins, mixed, tumblers, and second-layer solutions.

Libertarians DESTROYED by the IRS!https://t.co/QXZHO0Ou4W

— Prince Kropotkin (@Prince_Kropotkn) September 29, 2020

To provide information and technical capabilities for the CI Special Agents to trace the transaction inputs and outputs to specific users and to differentiate them from the multisig actors for Monero and the Lightning Layer 2 crypto transactions with minimal involvement of the external vendors. Neither the IRS and Chainalysis or Integra FEC provided more comments on the contract and Ricardo Spagni who is the former Monero lead developer got also silent about the issue.

The US Government didn’t want to let any bird slip over its fingers since for a few years different agencies were trying to autonomously find solutions that will allow them to use the technology beat the cryptocurrencies at their own game. The main argument is that these tokens will be used for illicit activities even with the reports showing that criminals prefer the traditional banks over the cryptocurrencies. Donald Trump also commented that the Secret Service will protect the United States’ Financial interests by monitoring the crypto transactions so the IRS has taken further steps to tax the ecosystem.

Other agencies took a more drastic approach. The Pentagon started hiring the crypto analytics service to detect criminal and suspicious crypto transactions by developing a war game in which Generation Z used crypto to rebel against the system. Ciphertrace the blockchain forensic company also claimed to have developed a tool capable of tracing Monero and the Department of Homeland Security being behind the initiative.

The FBI was also interested in tracking crypto-related activities as the reports show that the agency’s workforce tracked down a blockchain to end criminal network which used Monero and other crypto assets to finance itself.