A Europol official has confirmed that transactions conducted using the privacy-centric cryptocurrency Monero (XMR) can’t be traced, despite extensive research.
According to Jerek Jakubcek, a Strategy Analyst at Europol, transactions conducted using the Monero blockchain aren’t traceable. Jakubcek’s words were shared in a webinar from Blockchain Alliance, dedicated to the performance of privacy-centric cryptocurrencies. He said:
Since the suspect used a combination of Tor and [Monero], we could not trace the funds. We could not trace the IP addresses. Which means, we hit the end of the road.
He added that the transactions were initially traced on the Bitcoin blockchain and were visible, adding “that’s why we were able to get reasonably far.” As soon as the funds moved from BTC to XMR, however, he noted “that was the point where the investigation ended.”
While cryptocurrencies like Bitcoin and Ethereum have a public blockchain anyone can access to look into conducted transactions and addresses behind them, this information is confidential on the Monero blockchain.
Authorities throughout the world have been showing concern over anonymous cryptocurrency transactions, so much saw so earlier this year the Dutch Financial Criminal Investigative Service (FIOD), with assistance from Europol and Luxembourg authorities, seized one of the three largest cryptocurrency mixing services in the world, Bestmixer. The service was used to mask the source of funds going into it.
These regulatory concerns have seen some cryptocurrency exchanges drop support for XMR.Recently, as CryptoGlobe reported, Monero’s lead maintainer Riccardo ‘Fluffypony’ Spagni stepped down after five years working on the cryptocurrency. His place was taken by Snipa, a “longtime contributor” to XMR.
Featured image via Pixabay.