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Russians to develop Bitcoin tracking tool for the state agencies



It was demonstrated several times that the BTC blockchain is vulnerable to deep analysis.



30.Aug.18 6:46 AM
By Abigail Richards
Photo Envelope

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Russians to develop Bitcoin tracking tool for the state agencies
Bitcoin anonymity has led to the wrong assumption that crypto is untraceable. It allowed it's use in potentially harmful activities including tax evasion, capital move, financing terrorism. Crypto is also a leading tool to bypass the regulation of the foreign agents and NGO's. The state needs strict control of the BTC transaction or at least it needs a way to identify the transaction ends. It is entirely possible, despite the anonymous nature of the digital currency.

It is done by analysing the ways the BTC travels in blockchain, identifying known players (exchanges, banks, currency converters). It was demonstrated several times that the BTC blockchain is vulnerable to deep analysis and tracking of the transaction down to the person of interest is highly likely.

Institute for Information Security and Analysis (SPI) was a developer of such tool for banking sector. SPI was selected as developer of the BTC spy tool and granted nearly 3 million USD to develop the crypto-spy. Of course the tool will be not an ultimate weapon: there is a lot of mitigation services for the BTC and Ethereum as well as more privacy-focused currency projects, such as Monero.  



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