US Government Agencies Ask For Information On Crypto Transaction Tracking Tools
By: Date: August 4, 2020 Categories: Finance

The US Department of Defense and the US Army have recently demanded tools for investigating and tracking the source of cryptocurrency transactions.

On July 10, the US Government website published a request for information (RFI) directly from the US Department of Defense and the US Army. The requested article clearly says that the information submitted about this RFI will be voluntary in nature. From Fort Dix, New Jersey, the US Contract Command-New Jersey (CC-NJ) is currently surveying the entire market for potential contractors.

These contractors should be skilled enough to provide one license for one user of a web-based cloud application that is already tested and running. Now, this application should be capable of identifying bad players in the crypto markets by real-time transaction tracking, and spotting interactions with other entities, to help the various government agencies in bringing them down. This is because these people are using the crypto network for illicit and unethical practices like extortion, frauds, and money laundering.

Along with this, the request is accompanied by a Statement of Work (SoW), which details that the contractor must be able to provide a Software-as-a-Service (SaaS) to the US Army Criminal Investigation Command (USACIDC). The platform is specifically required for criminal investigations and other such necessary missions and executions.

USACIDC is one of the major military criminal investigation organizations that work under the Department of Defense to conduct criminal investigations across the entire globe. The agency also mentioned that applications must be able to conduct an in-depth investigation of the source of crypto transactions for various currencies and not just Bitcoin. The administration of the service will happen in the major cybercrime unit of USACIDC located in Quantico, VA. The intended users of this service will also include the Internal Revenue System (IRS), Drug Enforcement Administration (DEA), Transportation Security Administration (TSA), US Immigration and Customs Enforcement (ICE), Federal Bureau of Investigation (FBI), and Securities and Exchange Commission (SEC).

Earlier this month, the US Internal Revenue System (IRS) also requested information for tracking tools to help with privacy-centric cryptocurrencies and Layer 2 off-Chain protocols like Bitcoin Lightning Network. However, this request was for a working prototype for a bespoke tool to be developed as per the specifications. Here the demand was not for a pre-developed system or a portal not requiring any hardware or software.

The Defense Department’s request was seen after the Secret Service and the US Department of Homeland Security awarded a contract for blockchain analytics to Coinbase. Brian Armstrong, CEO, Coinbase, along with other officials, defended the move to sell the analytics software to law enforcement and fight for illegal activity. This move sparked controversy where critics claim that the service will cause a conflict of interest for the popular digital currency.

The deadline for this submission is July 20, which is set by the US Department of Army. It should have a potential for a one-year base agreement and up to four additional optional years.