When Monero (XMR) users choose to veil their transactions, they cannot be traced between the sender and receiver. This finding by an Europol official contradicts previous discoveries that XMR transactions can reveal some of the identities of users.
Blockchain Analysis Impossible for Monero Network
At least when it comes to the authorities, transactions on the Monero network remain impossible to trace. A recent presentation by Europol’s European Cybercrime Centre showed that even detailed research failed to reveal either IP transactions or coin movements.
The details about Monero were shared in a webinar from Blockchain Alliance, dedicated to the performance of anonymous coins. The details shared by expert Jerek Jakubcek also revealed Europol was closely tracking the development of anonymous coins. Jacubcek explained,
Since the suspect used a combination of Tor and [Monero], we could not trace the funds. We could not trace the IP-adresses. Which means, we hit the end of the road. Whatever happened on the Bitcoin blockchain was visible and that’s why we were able to get reasonably far
The special interest in Monero transactions underlines the fact that European authorities are trying to curb anonymous crypto usage. In the past year, Europol cracked down on Bestmixer, one of the leading Bitcoin (BTC) mixing services. Still, even coin mixing BTC can reveal something about transaction origins.
But the combination of an anonymous coin and Tor browser seems to be the approach to mask all traces. The Monero protocol held a recent bug which may have exposed IP-addresses in the past, but now, there are more approaches to veil all data.
Anonymous usage, however, is only possible in peer-to-peer transactions. Exchanges that still carry Monero require that incoming transactions are de-veiled and linked to an account identity and more often, a verified real-world identity. But after withdrawing Monero, the coins can be obscured and their origins lost.
Bitcoin, Ethereum, Offer Complete Transparency
Other public blockchains, like Bitcoin and Ethereum, offer a difficult, but a transparent path to tracing all transactions. But once funds enter the Monero blockchain, the trail ends. Authorities have made it more difficult to transact between coins.
The inability to track the Monero blockchain may spell trouble for exchanges still carrying the coin. In 2020, new legislation is unrolling, which may push some exchanges to report not only fiat transfers, but also, when possible, a history of crypto assets and their origin. With XMR, this would be impossible to achieve in detail.
The biggest problem is some of the XMR coins may be acquired through illegal activity, or to conceal other asset thefts. XMR can be acquired through botnets, and has been linked to North Korean hacking activity.
What do you think about Monero’s anonymity features? Share your thoughts in the comments section below!
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FAQs
The sender, receiver, and amount of every single transaction are hidden through the use of three important technologies: Stealth Addresses, Ring Signatures, and RingCT. Because every transaction is private, Monero cannot be traced.
Is Monero 100% untraceable? ›
Monero (XMR -2.42%) is a privacy coin that focuses on providing total anonymity for its users. Every user on Monero is anonymous by default, and every transaction is private, which also means that transactions can't be traced.
Can you track Monero payments? ›
Despite such anonymity, anyone can cryptographically verify the correct execution of a transaction on the Monero blockchain with transaction proofs recorded in the public database. A Monero Explorer transaction snapshot. The blockchain hides sensitive details.
Is Monero still untraceable in 2024? ›
Monero recipients are protected through "stealth addresses", addresses generated by users to receive funds, but untraceable to an owner by a network observer. These privacy features are enforced on the network by default.
Why is Monero banned? ›
Due to its enhanced anonymity, Monero is banned in some countries, which do so over concerns about illicit activities.
Can the US government track Monero? ›
The United States Department of Homeland Security (DHS) will now be able to track transactions of the most privacy-oriented cryptocurrency coin, Monero ( XMR ), leveraging a new tool by crypto intelligence company CipherTrace.
Can Monero be traced by police? ›
Monero is renowned for its strong privacy features and is claimed to be untraceable, according to its official webpage. Its privacy-enhancing technologies include Ring Confidential Transactions (RingCT), ring signatures and stealth addresses.
How to make Monero untraceable? ›
Ring signatures, stealth addresses, and RingCT (Confidential Transactions) significantly bolster the privacy and untraceability of XMR transactions, making tracing and tracking notably arduous and resource-intensive. Real-world examples demonstrate Monero's resilience in preserving privacy.
How secret is Monero? ›
Monero: The Untraceable Coin:
It's designed from the ground up to obfuscate transaction details, ensuring that the sender, receiver, and transaction amount remain confidential. This is achieved through advanced cryptographic techniques, such as ring signatures, confidential transactions, and stealth addresses.
Are XMR transactions private? ›
All transactions, balances, and data in the XRP Ledger are public. There are several configurations with varying levels of security that may be acceptable for your situation.
Monero is designed to be privacy-focused, and as such, it uses ring signatures and stealth addresses to make it impossible to trace transactions on the blockchain.
Which cryptocurrency is untraceable? ›
Unlike traditional cryptocurrencies, Monero uses ring signatures, stealth addresses, and confidential transactions to obfuscate the sender, recipient, and transaction amount. This means that transactions made with Monero are virtually untraceable, making it difficult for anyone to uncover your financial activities.
What is Monero backed by? ›
As an open-source project, Monero relies primarily on donations from the community to fund its development.
How many Monero are left? ›
Monero's current circulating supply is 18.43M XMR out of max supply of 18.20M XMR.
How long is Monero locked? ›
Monero deposits require 10 confirmations on the blockchain before your Monero is available in Exodus. If your deposit is still pending, you must wait for the transaction to reach at least 10 confirmations on the blockchain confirmed before the Monero is available. Typically, this should not take more than 20 minutes.
Why is XMR untraceable? ›
When a user initiates a transaction, their payment is mixed with others through Ring Signatures, concealing the original sender. The funds are then directed to a unique Stealth Address, hiding the recipient's identity. Additionally, RingCT encrypts the transaction amount, making it unreadable to external observers.
Is Monero harder to track? ›
According to cybersecurity author Andy Greenberg in an interview with Laura Shin, Monero's privacy features make it harder to trace compared to Bitcoin, which is currently the largest cryptocurrency by market value.
Is Monero less traceable than BTC? ›
Launched in 2014, Monero is designed to be truly private and untraceable. Unlike Bitcoin, Monero transactions are confidential, obfuscating sender, recipient and transaction amounts through advanced cryptographic techniques like ring signatures and stealth addresses.
