crypto bank Galaxy Digital has invested in security company CipherTrace, according to an official published on Feb. 19.
CipherTrace has reportedly raised $15 million in venture capital in a new funding round led by major venture capital firm , whose partner, Mark Kraynak, will join the firm’s board of directors. The round also saw investments from Neotribe Ventures and WestWave Capital.
California-based CipherTrace will use the secured funds in order to improve tools for intelligence, anti-money laundering () solutions, blockchain analytics and forensics and compliance.
CipherTrace’s reported mission is to de-anonymize and trace flows on blockchain that involve and activity by applying machine learning. The firm’s security solutions are reportedly used by , regulators, law enforcement investigators and auditors to reduce crime, as well as crypto exchanges in order to comply with AML policies.
Founded in 2015, CipherTrace began tracking criminal activity on ₿itcoin’s () blockchain in 2011, the press release reports.
Galaxy Digital executive Greg Wasserman said that appropriate AML technology is critical for the mainstream of . He also stated that institutional investors are increasingly reliant on companies like CipherTrace “to monitor the integrity of transactions with their counterparties.”
Previously, CipherTrace that around $1.7 billion in cryptocurrency was obtained through illicit activity in 2018, with over $950 million stolen from crypto exchanges and at least $725 million lost to .
Earlier today, Solidus Labs, a security firm founded by former Goldman Sachs fintech engineers, $3 million to combat crypto market manipulation.
Published at Wed, 20 Feb 2019 17:12:00 +0000
