IRS awards $1.25 million to Chainalysis and Integra FEC to crack Monero – Crypto News FlashOctober 1, 2020
- IRS has granted Integra FEC LLC and Chainalysis contracts worth more than $1.2 million in total to crack Monero.
- The first advance of the project has to be delivered within 8 months, according to the contract.
Chainalysis and Integra FEC LLC have been selected by the U.S. federal government’s Internal Revenue Service (IRS) to track Monero (XMR) transactions. A few days ago, the federal agency offered a $625,000 contract for companies to submit proposals for the development of a tool to crack the privacy features of Monero.
In total, both companies received orders estimated to be worth more than $1.2 million for the “Solution Challenge (SD) Three”: Cryptology Tracking,” as stated in the contract announcement. The Criminal Investigation Division of the Internal Revenue Service (IRS-CI) is a special task force in charge of investigating cyber-crime involving cryptocurrencies. Within the announcement, it revealed that it has limited capabilities and resources to pursue privacy coins and second layer payment solutions such as Bitcoin‘s Lightning Network and Ethereum‘s Raiden.
The contract awarded to Chainalysis and Integra FEC LLC stems from the agency’s need for tools to investigate “criminal activity on these networks”. The agency notes that there has been growth in two important areas. First, the number of users of the referred networks. Bitcoin’s LN alone has reached 10,000 nodes since its launch.
Secondly, the agency points to the growth in criminal activity (money laundering, sex trafficking, financial terrorism) in the darknet which could favor anonymous cryptocurrencies such as Monero. This statement corresponds to a report published by CipherTrace. The company revealed in early September that it developed a tool to track transactions on Monero as part of a