Tech

Ed Drake

Blockchain security firm CipherTrace secures $15M investment

Blockchain security firm CipherTrace has secured VC funding of $15 million, with support from some of the most experienced investors in the cryptocurrency sector including Mike Novogratz’s Galaxy Digital.

The company, which provides compliance solutions and technologies for crypto exchanges, banks and regulators, has been tracking criminal activity around cryptocurrency sector since 2011. The funding round was led by Aspect Ventures, drawing support from a selection of New York and Silicon Valley investment funds.

David Jevans, CEO at CipherTrace, welcomed the support from investors, which he suggested would help the firm become a world leader in blockchain security. He noted, “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.”

Greg Wasserman, co-head of principal investments at Galaxy Digital, said CipherTrace would play an increasing role in attracting institutional investors to the sector.

“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,” Wasserman said.

Neotribe’s Aditya Singh added, “The CipherTrace team executes better than 99% of venture-backed startups. This successful management team has worked well together at previous startups and has visible operational and scaling advantages over their less-experienced competitors.” 

The funding is the latest support for an emerging blockchain industry leader, and comes at a time of growing customer demand for CipherTrace services.

Mark Kraynak of Aspect Ventures said with the new support, CipherTrace would play a pivotal role in taking crypto assets to a mainstream global audience. He explained, “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.”

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