Moritz Kindler | Unsplash
The last few hours have seen a huge boost in the price of Monero (XMR). What is even more interesting, as well as surprising, is that after a season of quiet activity, with no apparent large volumes, there was a 51% increase.
This increase in price does not seem to be caused by people wanting to invest in the token, but rather an anomaly. In fact, investigators claim that it is about a maneuver to launder funds in Bitcoin, worth more than $330 million dollars. This caused the price to rise to $347.72 dollars in a range of 7 hours. However, there would then be a correction, heading towards $262.06.
Monero XMR Price | CoinGecko - TradingView
According to blockchain researcher ZachXBT, a “suspicious transfer” transpired that had been made by a “potential victim” in the amount of 3,520 BTC, which as of today with respect to market value, is estimated to be worth approximately $333 million. The funds were exchanged through various exchange platforms with the purpose of acquiring XMR.
Post of ZachXBT on X
In addition, ZachXBT assumes that this situation was based from the beginning on theft because the perpetrator did not mind having to pay high fees as well as raising suspicions, taking into account the capabilities of the Monero blockchain. At this point we must consider that Monero is a blockchain that uses a series of technologies that greatly favor the obfuscation of addresses and transactions, in such a way that the tracking of funds is made as difficult as possible, making it practically impossible to have a clear record of a malicious activity.
Criminals are likely to opt for Monero because of its ability to leave no trace, unlike Bitcoin and Ethereum networks where transactions are recorded on the blockchain, with relevant information such as who sent funds, who received them, the specific time they were made, their amounts, the gas price paid to make the transaction, and much more.
If we consider the potential of Monero in terms of privacy, it could be said that we are facing a great exponent. However, those who carry out operations that could be considered fraudulent, using the network does not ensure that they get off scot-free if they have previously left traces on other chains by making countless exchanges.
In fact, Csilla Brimer, a former member of the MAGIC Monero Fund committee, claims that there have been reports in the local media that the Finnish National Bureau of Investigation (KPR) has been successful in tracing transactions made in Monero. This from a logical point of view seems to be impossible due to the architecture of the chain itself, so it is likely that the investigation has been successful only if the user has performed inefficiently in terms of security. Something that Brimer seems to reinforce with the idea that if care is not taken in the operations performed based on security, the exchange between Bitcoin and Monero could be the beginning of an information leak that exposes the culprit.
Kevin Horvat | Unsplash
There has been intense debate about the absolute privacy afforded by Monero. More sensibly, this debate has led to an imminent warning about the way criminals agree to carry out their criminal maneuvers. It is for this reason that in 2020, the IRS has offered companies the sum of $620,000 in order to “crack” the way in which Monero maintains its privacy. There were also agreements with the firms of ChainAnalysis and Integra FEC; blockchain tracking and data forensics firms respectively.
There is still no truthful information to ensure that the network has been cracked. But there is an approach to those who have committed breaches. For example the case of Jack Edward Finney, a drug dealer on the deep web who has been convicted and then had his Monero tokens confiscated by the British authorities. This was based on a transfer from Finney to an investigator via a confiscation order. Subsequently, those tokens were sold, which the prosecution called the first Monero payment in the UK.
It is clear that in terms of privacy, Monero seems to be the undisputed leading network. But this does not ensure that those who misuse the network are not linked to their person. If investigations are carried out in retrospect, situations could be analyzed that link them directly to the initial event. Monero is really effective, but if mistakes are made with respect to security habits, it is possibly a very important trace that is considered very important to find the person responsible.
- Main image edited in Canva.
- Information consulted in decrypt.co.
- Translated to English with DeepL.