Analytical firm CipherTrace announced on Friday that it has filed patents for the technology enabling tracking of XMR transactions. This could end Monero's career as a privacy coin. The privacy cryptocurrency cost right now $123.22 and is down 3.6% in the last 24 hours.
The Monero (XMR) released in 2014 was eventually created as a cryptocurrency for anonymous transactions. It was one of the largest privacy coins in the industry and was used by those who value anonymity. Unfortunately, this feature may not be Monero's feature soon.
CipherTrace, a cyber security company, has filed not one but two patents for the technology they believe is capable of tracking transactions on Monero. More than 45% of the Darknet market is served by private XMR tokens. After bitcoin, it is the second most popular digital currency chosen by criminals.
For a long time the law enforcement authorities have been interested in this privacy coin. Ciphertrace said that the development of XMR transaction tracking technology has been ongoing since 2019. It is part of a project carried out by the US Department of Homeland Security. However, this authority is not the only government agency looking for a way to identify XMR portfolios. In September, the IRS announced that it will award a prize of up to $625,000 to anyone who is able to break Monero's privacy.
The patented technology includes statistical methods of assessing transactions and grouping probable owners of assets. The patent also includes methods for tracking and obtaining information on transactions. The mere fact that Monero is subject to increased scrutiny by the exchanges does not make life any easier for those who appreciate the anonymity of transactions.
Some exchanges like OKEx and Upbit have already removed privacy coins from their offerings by interpreting the FATF guidelines. This month ShapeShift, based in Colorado and Switzerland, delisted the Zcash, Dash and Monero privacy coins.