The United States Internal Revenue Service (IRS) has awarded two $625,000 contracts to Chainalysis and data forensics analysis firm Integra FEC to crack Monero (XMR), according to filings posted on September 30.
- Chainalysis and Integra will both receive an initial grant of $500,000 to fund the development of the solution, and the remainder if the solution is approved
- Monero’s privacy protocol hides both sender and recipient information, as well as transaction amounts
- Lawmakers have expressed concern about privacy coins, saying that they would enable financing of illegal activities
- The IRS first revealed that they were looking for solutions to trace Monero transactions in early September
- Another cryptocurrency intelligence firm, CipherTrace, claimed to have broken Monero’s privacy features for the US Department of Homeland Security
- The two contracts have an 8 month deadline to develop the tool