The United States Internal Revenue Services (IRS) has offered a bounty of up to $625,000 to anyone who can break purportedly untraceable privacy coins like Monero (XMR) as well as trace transactions on Bitcoin’s (BTC) Lightning Network.
The official proposal, published last week, says the IRS will accept submissions in the form of working prototypes until September 16. If accepted, applicants will receive an initial payment of $500,000.
This grant will allow applicants to develop their prototype into a working concept over the next eight months. Once the pilot test is complete and approved by the government a further $125,000 grant will be awarded.
IRS-CI is seeking a solution with one or more contractors to provide innovative solutions for tracing and attribution of privacy coins, such as expert tools, data, source code, algorithms, and software development services.
The announcement defines the initiative’s primary objectives as helping IRS Criminal Investigation (CI) special agents to trace transactions, including identifying