The United States Tax Service (IRS) has released a document in which it indicates its willingness to pay $ 625,000 to anyone who offers a technology capable of tracking cryptocurrency transactions such as Monero (XMR). The reward also includes those who help track Bitcoin's so-called 'second layer network', the Lightning network, or other forms of off-blockchain transactions that provide privacy to illicit actors.

Privacy cryptocurrencies, such as Monero, are the shoe of the United States Internal Revenue Service (IRS). So far, Monero has managed to evade transaction tracking services and is one of the preferred cryptocurrencies for making payments on the darknet. For its part, the Bitcoin Lightning network provides privacy by creating channels that, while remaining open, allow the flow of transactions without records, making it difficult to track.

It seems that the federal office has had enough and for this reason has made this offer public. The reward they offer could reach $ 625,000: First, up to $ 500,000 is offered to anyone who submits a valid, scalable proof of concept. These funds will be distributed over 8 months. Then, if the proposed technology can be upgraded and operational by the US government in less than 120 days, up to an additional $ 125,000 will be awarded.

Bounty hunters who want to participate must comply with three aspects. First, provide information that allows federal agents to track the entries and exits of transactions, which occurred in 2020, to a specific user.

Second, these bounty hunters will need to provide tools to predict the probabilities of other transactions taking place. And finally, provide a source code that allows the Tax Office to develop, modify or integrate other capabilities. All this is specified in the original document published on September 4 of this year.

The United States Tax Service also gives until September 16 of this year for interested parties to submit their proposals. This deadline would expire next week, so such a short window of time may mean that people with solutions already exist.

In the published document, the IRS emphasizes that the technology presented must allow the tracking of transactions without the need for any external agent. This would leave out agencies like Chainalysis or Ciphertrace, who have recently carried out various tests trying to trace private transactions, so far without success.

The IRS also expressly promises that this year it has earmarked up to $ 1 million for pre-selected solutions. This statement could indicate that several solutions will be considered. Likewise, they express that the proposals will be evaluated both in the technical aspect and in their implementation cost.