IRS to Pay $625k Bounty For Building Monero (XMR) and Lightning Network Tracking Solution

The U.S Internal Revenue Service (IRS) has issued an incentive of up to $625,000 in bounty for anyone who will develop a Monero (XMR) Tracking solution for the law enforcement agency. According to the proposal floated last week, the IRS is looking to equip its Criminal Investigation (CI) better when it comes to virtual currencies; the focus is currently on private coins like Monero and transactions on Lightning Networks. The proposal reads,

“IRS-CI is seeking a solution with one or more contractors to provide innovative solutions for tracing and attribution of privacy coins, such as expert tools, data, source code, algorithms, and software development services.”

IRS pointed out that criminal activity related to private coins, especially Monero, has been on the rise in recent years. The latest market stats show that XMR is used for around 45% of darknet activity, only second to Bitcoin. Given its surging use for illegal activity, the IRS has since been prompted to act and looking to increase its investigative resources with this challenge.

Interested participants have up to September 16 to have submitted their working prototypes, after which the selected applicants will be granted an initial $500,000. This grant is expected to facilitate further development of the working prototypes for around eight months. The final process will be pilot testing and government approval for the applicants to receive the pending $125,000.

Expected Solutions!

The proposal highlights three fundamental goals of this initiative and specifically notes that all solutions must support crypto transactions that occurred this year. For starters, selected participants are expected to deliver by providing information and technical capabilities to the IRS Special agents such that they can trace Monero transactions in the near future.

Also, the underlying infrastructure should feature other functionalities like statistical likelihoods to help CI’s predict unusual patterns in private coin transactions. Last but not least, they should provide the code for their innovations and ensure that the IRS can further develop without external assistance.

“Provide algorithms and source code to allow CI to further develop, modify, and integrate these capabilities with internal code and systems with minimal costs, licensing issues, or dependency on external vendors.”

This initiative by the IRS is not the first debut of a Monero tracking solution, intelligence firm CipherTrace recently announced that it has developed Monero tracking tools for the U.S Department of Homeland Security.

Get Free Email Updates!

*Action* Enter Best Email to Get Trending Crypto News & Bitcoin Market Updates

I will never give away, trade or sell your email address. You can unsubscribe at any time.

Edwin Munyui
Edwin Munyui
Edwin is a FinTech enthusiast with a particular interest in blockchain technology and cryptocurrencies. He has worked as an author in the blockchain space since 2017 and enjoys creating content that both crypto veterans and newbies can understand. His simple writing style and financial market knowledge have made him a reputable fundamental and technical analyst with the ability to handle any topic around blockchain and crypto over the years.

[Alert] Use the author's self-conducted information at your own risk, do you own research, never invest more than you are willing to lose.

[Disclosure] The published news and content on BitcoinExchangeGuide should never be used or taken as financial investment advice. Understand trading cryptocurrencies is a very high-risk activity which can result in significant losses. Editorial Policy \\ Investment Disclaimer

LEAVE A REPLY

Please enter your comment!
Please enter your name here

3,489FansLike
2,795FollowersFollow
4,271FollowersFollow

Live Bitcoin Price & Latest BTC Charts

Today's Latest Crypto News

YFI Plunge Might be Over After Record Number of Addresses Unload All their Tokens

In the past three days, the DeFi darling YFI has lost more than 36% of its value, going from $34,400 to $21,950 today. At the...

Financial Firms & Law Enforcement Find Cryptocurrencies More Risky Than Opportunistic: RUSI Survey

Financial firms, government, and the private sector all see cryptocurrencies as risky, found a survey by the Royal United Services Institute think-tank and the...

Kadena to Launch DEX to Rival Uniswap; Touts Higher Speeds and Multiple Protocol Support

Kadena announced on Tuesday that it would roll out a Decentralized Exchange (DEX) dubbed ‘Kadenaswap’ towards the end of 2020 in a bid to...

Crypto Exchange Bitpanda Raises $52 Million in Series A Round to Offer Access to Stock Markets

Cryptocurrency exchange Bitpanda has raised $52 million in its first major funding round, Series A led by PayPal co-founder Peter Thiel’s Valar Ventures. Other...

Coinbase Launches Staking Program For Cosmos, ATOM Holders Can Earn 5%

In a blog post released on Wednesday, Coinbase introduced staking on ATOM, promising up to 5% return per annum on the value staked. The...

BitcoinExchangeGuide is a hyper-active daily crypto news portal with care in cultivating the cryptocurrency culture with community contributors who help rewrite the bold future of blockchain finance. Subscribe on Google News, see the mission, authors, editorial links policy, investment disclaimer, privacy policy. Got News? Contact us, we are human too. Note: nothing here is financial advice, do your own research thoroughly.

Start Using Crypto Today