US Plans to Carry Out Forensic Analysis of Transactions Using Anonymous Cryptocurrency


The US Department of Homeland Security (DHS) will explore ways to analyze transactions using anonymous cryptocurrencies in criminal intent. This was stated in a department document.

In the widespread use of cryptocurrency at the commercial and state level, DHS specialists are alarmed by the difficulty in determining the sender of the transaction and the amount of funds transferred. This particularly applies to the use of Zcash and Monero, characterized by the anonymity and privacy of transactions.

“This proposal calls for solutions that enable law enforcement investigations to perform forensic analysis on blockchain transactions. This analysis can be approached in any number of ways and may consider different data situation use cases depending on whether additional data from off-chain sources are available.” writes the agency.

DHS offers to find flexible solutions for forensic analysis of transactions in the blockchain by law enforcement.

“Since there is the possibility of creating new anonymous crypto platforms, any proposed solution would have to either be applicable more generally or provide working approaches to treating newer blockchain implementations.” the document says.

The specialists of the ministry offer interested persons to provide them with the necessary technical information. A full proposal for the development of measures to track transactions using anonymous cryptocurrencies should be announced on December 19.

In June, Deputy Assistant Director of Investigations at the US Secret Service, Robert Novy addressed the US Congress with a request to take the necessary measures to counteract the use of anonymous cryptocurrencies by criminals, including Monero and ZCash.

“We should also consider additional legislative or regulatory actions to address potential challenges related to anonymity-enhanced cryptocurrencies, services intended to obscure transactions on blockchains (i.e. cryptocurrency tumblers or mixers) and cryptocurrency mining Pools,” – he said.

Novy also detailed his request by requesting extended power for law enforcement agencies that would allow them to withdraw “digital evidence” from private enterprises, even if the latter refuses to provide user data.

He also criticized special technologies, such as cryptocurrency tumblers or mixers, which help to hide the sender and recipient of funds in traditional public blockchains.