Topic: USA offers $ 625,000 to track Bitcoin Monero and Lightning users - page 2. (Read 347 times)

If they choose not to work with the agency that claimed to have the tools to track the transactions done through Monero, it a sign that the tools the CipherTrace delivered to the U.S. Department of Homeland Security for investigations purpose is not up to the task. But, I dont why IRS and other government agency are getting tough on crypto when they never do something to support crypto mainstream which will make crypto users to comfortably pay their tax.

Burgalin_LLC, always provide the source of your news.

Why can't they just collaborate with the agencies that may have been researching these things already? Oh right, budget. Anyway it seems that the IRS is really getting agitated on how well privacy coins are aiding people who doesn't want to pay for their taxes despite using cryptocurrencies. That's the main goal of these coins and tools anyway, to prevent detection and snooping from outside sources and let people enjoy using their own money on their own terms. No one in their right mind would take that low of an offer, I guess, and in installments? Perhaps if they ramp up the budget to a million dollars that is where they would get some organizations talking to 'solve' this.

The United States Tax Service (IRS) has released a document in which it indicates its willingness to pay $ 625,000 to anyone who offers a technology capable of tracking cryptocurrency transactions such as Monero (XMR). The reward also includes those who help track Bitcoin's so-called 'second layer network', the Lightning network, or other forms of off-blockchain transactions that provide privacy to illicit actors.

Privacy cryptocurrencies, such as Monero, are the shoe of the United States Internal Revenue Service (IRS). So far, Monero has managed to evade transaction tracking services and is one of the preferred cryptocurrencies for making payments on the darknet. For its part, the Bitcoin Lightning network provides privacy by creating channels that, while remaining open, allow the flow of transactions without records, making it difficult to track.

It seems that the federal office has had enough and for this reason has made this offer public. The reward they offer could reach $ 625,000: First, up to $ 500,000 is offered to anyone who submits a valid, scalable proof of concept. These funds will be distributed over 8 months. Then, if the proposed technology can be upgraded and operational by the US government in less than 120 days, up to an additional $ 125,000 will be awarded.

Bounty hunters who want to participate must comply with three aspects. First, provide information that allows federal agents to track the entries and exits of transactions, which occurred in 2020, to a specific user.

Second, these bounty hunters will need to provide tools to predict the probabilities of other transactions taking place. And finally, provide a source code that allows the Tax Office to develop, modify or integrate other capabilities. All this is specified in the original document published on September 4 of this year.

The United States Tax Service also gives until September 16 of this year for interested parties to submit their proposals. This deadline would expire next week, so such a short window of time may mean that people with solutions already exist.

In the published document, the IRS emphasizes that the technology presented must allow the tracking of transactions without the need for any external agent. This would leave out agencies like Chainalysis or Ciphertrace, who have recently carried out various tests trying to trace private transactions, so far without success.

The IRS also expressly promises that this year it has earmarked up to $ 1 million for pre-selected solutions. This statement could indicate that several solutions will be considered. Likewise, they express that the proposals will be evaluated both in the technical aspect and in their implementation cost.