Stealth addresses are temporary, one-time-use cryptocurrency wallet addresses that serve as a proxy for a user's public key address to improve transaction anonymity. Introduced in 2014, although their operation is more complex, they help prevent transactions from being traced back to a known wallet address. While stealth addresses can enhance privacy for legitimate users, regulatory agencies such as the U.S. Internal Revenue Service (IRS) are developing methods to track their use in illegal activities like tax evasion.

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