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The United States Internal Revenue Service is offering a bounty of up to $625,000 to individuals who are successfully able to breach the privacy protocol of Monero (XMR), according to a proposal published in early September.
The proposal asks for submissions from anyone who can demonstrate working prototypes that can trace transactions on Monero as well as the Lightning Network
Specifically, the tax department desires innovative solutions for “tracing and attribution of privacy coins, such as expert tools, data, source code, algorithms, and software development services”
The IRS will offer a grant to successful applicants with their concepts, granted $500K for the first 8 months
Those who positively demonstrate the solution - a further $125,000 will be granted
Monero is the most popular privacy coin on the market and obfuscates both sender and receiver identities, and transaction amounts
The US government has been working with crypto companies to establish tracing solutions, with CipherTrace and Department of Homeland
Security recently signing a contract to that end
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