The US Internal Revenue Service requires a $ 625,000 reward for anyone able to track Monero (XMR)
The IRS has announced that it is offering a reward of up to $ 625,000 to anyone who can break supposedly non-traceable cryptocurrencies like Monero (XMR) and also book Lightning Network transactions.
The announcement was released last week in a post from the Treasury Department. The IRS is accepting proposals with the deadline set for September 16, at 8 am EDT. If the application is accepted, the applicant will be rewarded with a fixed amount of $ 500,000.
This initial concession will facilitate the development of a work project based on the prototype for a period of eight months, after which the project will be tested. Upon completion of testing and government approval, the candidate will receive an additional $ 125,000.
The federal agency’s announcement highlights the initiative’s primary objective of assisting Special Criminal Investigation agents in tracking and monitoring transactions.
The IRS aims to employ the tools to anticipate and discover future transactions for addresses that have been flagged.
The final project must meet certain conditions to qualify for approval. For example, they must provide criminal investigators with complete control, with additional options to modify or expand them. This will eliminate the need for the agency to depend on external suppliers.
Monero is among the most used digital currencies by criminal organizations, as it is considered more secure compared to trackable cryptocurrencies like Bitcoin. The revenue agency said Monero is being adopted to meet ransom requests for Sodinokibi – a group of ransomware.
There has been an increase in the demand for these coins by criminal groups, even as the authorities improve their forensic skills and bring contractors on board, like Chainalysis.
The blockchain analytics firm helped law enforcement track Bitcoin and other cryptocurrency transactions to combat crimes like terrorist financing, money laundering and child abuse. The company played a significant role in dismantling three terrorist organizations last month.
Forensic company CipherTrace also reported that it has built a new tool to track XMR transactions. At the time of writing, however, the tool’s skills have not been proven.