Blockchain analytics company CipherTrace has secured $15 million in a funding round from venture capital firms.
The round was led by Aspect Ventures and was participated by notable investors including Galaxy Digital, Neotribe Ventures, and WestWave Capital.
Launched in 2015, the Silicon Valley-based firm is developing a blockchain intelligence platform which will include solutions for anti-money laundering (AML), blockchain analytics, and compliance. The company believes that its products can be used by the government, regulators, law enforcement investigators and auditors to enforce AML laws, combat crime and reduce fraud.
“CipherTrace is pleased to announce this strong backing from top-tier investors who share our vision that cryptocurrencies and blockchains need to be secured, regulated, and made safe so that they can scale globally,” said David Jevans, CipherTrace CEO. “Our investors have decades of experience investing in proven teams and technology companies in the Internet security and financial technology industries. CipherTrace will join the ranks of these successful companies.”
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According to the announcement, the company will use the new funds to expand its global reach and extend product functionality. Moreover, to oversee the business decisions of the company, Aspect Ventures’s partner Mark Kraynak will join the board of directors at CipherTrace.
The Booming Blockchain Intelligence
The industry of blockchain analytics and intelligence is booming lately given the increasing concerns with the vulnerabilities in the decade-old technology. Just yesterday, crypto exchange Coinbase announced the acquisition of Italy-based blockchain analytics company Neutrino to enhance the security features on the platform.
Last week, Chainalysis, another startup in the same sector, raised $30 million in Series B funding round. The New York-headquartered firm also expanded its reach across the Atlantic by opening a new office in London.
“Great blockchain companies will be forged as crypto assets achieve mainstream adoption,” said Mark Kraynak at Aspect Ventures. “We believe security and compliance with anti-money laundering and other financial regulations, as enabled by CipherTrace, will be a key first hurdle to mass adoption.”