Chainalysis and Texas company sign millionaire contract with US Revenue to track Monero transactions

The IRS has named the winners of its rewards program to track transactions in privacy and second-tier tokens.

On Wednesday, the IRS signed two contracts of $625,000 each to develop tracking tools for Monero and Layer 2 privacy token protocols. The winners were the blockchain analysis companies Chainalysis and Integra FEC.

The IRS initially announced its search for an analytical solution that would eliminate the privacy of these protocols earlier this month. An IRS representative told Cointelegraph that the agency selected the two winning companies from a field of 22 bids received, although the only justification given by the representative for the agency’s decision was „a comparative analysis was used.

Chainalysis is among the leading companies in analytical Bitcoin Millionaire and has won bids from a number of government agencies. Integra FEC is a relatively unknown name, despite millions of dollars in contracts with, for example, the US Securities and Exchange Commission for „Other Scientific and Technical Advisory Services“.

Integra FEC has not responded to the Cointelegraph’s requests to comment on the matter so far. Chainalysis has refused to comment, as it usually does when asked about its work with privacy tokens.

As governments increase their interest in tracking cryptomorphs, the field of companies working with tracking should expand. In mid-September, the U.S. Treasury erred in imposing sanctions on a Monero portfolio, which turned out to be a payment ID.