Here’s the Chainalysis training video they gave to the IRS.
6:50 “…increasing ring size to 100s will make our jobs that much more difficult”
13:35 “…a lot of how we do our Monero tracing is through involves IP observation…”
13:55 “Dandelion has made that impossible.”
15:15 “Here we see are stealth addresses. We can’t just toss that into the search bar and see other transactions from that user.”
Minutes 16 through 18 show how they use heuristic probability with fees and number of decoys. They also are using the older 10 decoy setup and not the current 16, soon to be hundreds of thousands with FCMP++
19:55 “…are greyed out. These are our tool ruling out some decoys. It uses a variety of heuristics to determine some of those {decoys} may have been previously spent”
20:20 “… We have an output labeled RPC. This will always draw our attention. What that means is a user connected to one of our nodes to broadcast their transaction.”
20:35 to end: Shows transaction hashes from MorphToken swapping service. They didn’t trace it without having bad OPSEC. The subject used Chainalysis nodes to broadcast his transactions. That was on Exodus, a lightweight wallet where there’s no self-custody. It was also relying on 10 decoys. Chainalysis isn’t going to show a hard to trace for training, they want to show exactly how they did it to find other like transactions.
So yeah, the Chainalysis can’t trace Monero easily and a lot of tracing in this video relied on decoys, heuristics, sloppy OPSEC, and subpoena’d data because of Bitcoin transactions being public.
Odysee
LEAKED: How IRS Traces Monero
In this leaked video, we see specific internal techniques for how the IRS can track and trace Monero.
