The IRS has selected Chainalysis and Integra FEC to develop tools for tracking transactions of the Monero cryptocurrency.
In September, the IRS announced that it would pay up to $625,000 to anyone who can offer an efficient method to decrypt private Monero transactions.
A contract for this amount will be awarded to each of the companies, resulting in an IRS cost of $1.25 million, subject to other requirements. The initial payment will be $500,000. These tools are designed to develop the proposed solution. If it passes testing and is approved, the companies are entitled to another 125 thousand.
The IRS spokesman said that they received applications from 22 companies. The selection process used the methods of “benchmarking”.
Chainalysis tools are widely used in the industry and by regulators. Integra FEC has a multi-million dollar contract with the US Securities and Exchange Commission (SEC) for “other technical consulting services.”