Leading Blockchain Security Compliance Company CipherTrace Secures $15 Million in Venture Capital
CipherTrace is a blockchain security company, and they recently announced a venture capital financing round to help them support their rapid growth. During the funding round, the company brought in $15 million, which is due to the leadership of Aspect Ventures.
Other investors that participated in the round include Galaxy Digital, Neotribe Ventures, and WestWave Capital. As a result of the round, Mark Kraynak from Aspect Ventures will be joining the Board of Directors.
CipherTrace brings various products to the crypto sector, dealing with anti-money laundering, blockchain analytics, and compliance. The government, regulators, law enforcement, and auditors all benefit from these options in their own work in the enforcement of laws and reducing fraud in the marketplace.
Due to the company’s own compliance with regulations, crypto exchanges use it to check their compliance as well. Traditional financial institutions find support in their own mitigation of threat, though it is primarily associated with crypto activity instead.
The point of the blockchain analytics in these products is to eliminate the anonymity of the transactions. The protocols gather data each week, using machine learning to track the flow of transactions to and from the user, whether they are legitimate investors or criminals.
Speaking on this recent funding round, CEO David Jevans of CipherTrace said,
“CipherTrace is pleased to announce this strong backing from top-tier investors who share out vision that cryptocurrencies and blockchains need to be secured, regulated, and made safe so that they can scale globally. Our investors have decades of experience in investing in proven teams and technology companies in the Internet security and financial technology industries. CipherTrace will join the ranks of these successful companies.”
Considering the role that CipherTrace plays in the compliance of these various security protocols, they have managed to continue rapid growth as their products and services see a greater demand.
With the new funds, the company plans to expand the reach of their brand around the world, while improving the functionality of their own products. Greg Wasserman, the co-head of principal investments at Galaxy Digital, said,
“Galaxy Digital is a CipherTrace customer and an investor. Appropriate AML technology is critical for the mainstream adoption of digital assets. Institutional investors are increasingly looking to platforms like CipherTrace to monitor the integrity of transactions with their counterparties.”
At Aspect Ventures, Kraynak added, “Great blockchain companies will be forged as crypto assets achieve mainstream adoption. 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.”
Neotribe’s Aditya Singh spoke on the new investment as well, saying,
“The CipherTrace team executes better than 99% of venture-backed start-ups,” said Aditya Singh of Neotribe. “This successful management team has worked well together at previous startups and has visible operational and scaling advantages over their less-experienced competitors.”
Both Warren Weiss (WestWave Capital) and Tuff Yen (Seraph Group) expressed their joy and positivity over the upcoming progress they expect from CipherTrace, considering them an “elite team of cybercrime experts.”