Leaked Chainalysis video suggests Monero transactions may be traceable

Updated Sept. 11, 10:08 a.m. UTC: This article has been up to date to incorporate a quote from the Chainalysis coaching video.

A leaked Chainalysis video suggests that Monero (XMR) transactions may be traceable regardless of the privacy-preserving nature of the blockchain.

The leaked video, which outlines the corporate’s monitoring strategies associated to the coin, has since been deleted.

Chainalysis’ potential capability to trace XMR transactions raises worrying considerations, as Monero manufacturers itself because the “secure, private, untraceable cryptocurrency that keeps your money confidential.”

When Cointelegraph approached the onchain intelligence agency concerning the leak, a Chainalysis spokesperson stated that they “have no comment to share at this time.”

A replica of the leaked video was shared with Cointelegraph by an nameless supply.

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Can Chainalysis observe Monero IPs by way of its personal “malicious nodes?”

Images of the leaked video reemerged on the social media platform Reddit, posted by pseudonymous consumer u/__lt__.

The consumer claims that the leaked video exhibits how Chainalysis can observe transactions again to 2021 by way of its personal “malicious” Monero nodes. The consumer wrote that the corporate had doubtless:

“1. Run a large number of xmr nodes from various geographical locations and ISPs to capture transaction ip address and time stamps. 2. Transaction feed (ip and everything) from one or more popular wallets’ default nodes.”

Combined with pretend “decoy” inputs, this methodology can “reduce anonymity” round Monero transactions, claimed the consumer.

Cointelegraph approached Monero for remark however had not heard again on the time of publication.

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Chainalysis is simply “doing its job,” which may make Monero safer

While the claims round Monero’s transaction traceability may first appear alarming, buyers haven’t any cause to panic concerning the blockchain’s privacy-preserving nature.

This is as a result of Monero transactions stay untraceable for many of the world, besides Chainalysis — one of many main onchain intelligence corporations within the crypto house, with huge blockchain experience.

While the leak invited vital group backlash towards Chainalysis’ Monero nodes, the onchain intelligence agency is just doing its job, famous u/_It_:

“They are just doing their job: tracing transactions on blockchains. No one says they can’t run nodes that collect transaction and IP info either. […] I think [Chainalysis] are kind of like whitehat hackers that make Monero more secure.”

Chainalysis additionally notes that Monero transactions stay untraceable for the broader crypto house inside the coaching video:

“First, it is unlikable, meaning that it’s not possible to link two or more transaction outputs to the same identity. It is also untraceable, meaning that we can’t unqiquely determine the origin of the transaction. And it is confidential, meaning that we can’t even tell the amounts being transferred in a transaction.”

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