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CipherTrace develops Monero-tracing tool to aid US DHS investigations

Published 08/31/2020, 08:00 AM
Updated 08/31/2020, 10:00 AM
CipherTrace develops Monero-tracing tool to aid US DHS investigations
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Privacy and anonymity are the primary benefits of cryptocurrency, yet due to the transparent nature of blockchain technology, crypto transactions are not as anonymous as some may think. Rather, Bitcoin (BTC) and other cryptocurrencies are pseudonymous, as each transaction on a blockchain network is transparent, making it possible to trace wallet addresses back to their source.

For example, cryptocurrency intelligence company CipherTrace is capable of tracing several hundred cryptocurrency transactions by analyzing wallet addresses, exchange information and smart contracts. John Jefferies (NYSE:JEF), the chief financial analyst at CipherTrace, told Cointelegraph that the firm is currently capable of tracing over 800 cryptocurrencies to support investigations of crimes. This is extremely relevant, as recent findings show that cryptocurrency-related crimes during the first half of this year have already accounted for $1.4 billion worth in thefts, hack and fraud.

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