The well-known blockchain investigation firm Chainalysis seemingly has a new target: Monero. During a recent webinar concerning illicit crypto activity, presenters from the firm stated that “Monero is our top priority.” But can Chainalysis really succeed in analyzing Monero, or is this just a distant and unlikely goal?
Chainalysis originally rose to prominence after it succeeded in tracing Bitcoin transactions and deducing the identities of address owners. The firm has since expanded its efforts into tracking other coins and investigating certain crimes. Chainalysis has previously worked with the IRS to fight tax evasion; more recently, it joined forces with Binance to combat money laundering.
But despite its past accomplishments, it is uncertain that Chainalysis will have much success tracing Monero. The company has managed to analyze Bitcoin transactions extensively due to the fact that Bitcoin relies on a public ledger. But Monero, as a privacy coin, doesn’t reveal transaction data on its ledger, making significant analysis virtually impossible.