Chainalysis, a cryptocurrency compliance and investigation solution, has bagged $30m in its Series B round.
The round was led by US venture capital firm Accel. Participation also came from previous backer Benchmark, increasing its commitment to the company after leading the $16m Series A in 2018.
Funds from the round will be used to aid the strategic development of new cryptocurrency usage, as well as opening an office in London. This new office would serve as a hub for research and development efforts and support the regional expansion.
Chainalysis helps businesses to prevent, detect and investigate incidents of money laundering, fraud and compliance violations in the cryptocurrency space. Financial institutions utilise the technology to detect suspicious activity and emerging threats from the dark web, complete enhanced due diligence checks, and conduct real-time transaction screening and verification.
Last year, the company released a real-time anti-money laundering and compliance software solution for cryptocurrencies. The Chainalysis KYT (know your transactions) solution supports Bitcoin, Ethereum, Litecoin, Bitcoin Cash and stablecoins.
Over 100 financial institutions and cryptocurrency exchanges have signed up to the KYT solution to automate their crypto transaction screening and user activity monitoring.
Chainalysis CEO and co-founder Michael Gronager said, “While other companies in our industry are pulling back, Chainalysis is investing in building foundational technology for the future of cryptocurrency. We are focused on empowering new cryptocurrency use cases like stablecoins and supporting businesses and governments globally as cryptocurrency regulation becomes more defined.”
As part of the deal, Accel partner Philippe Botteri will serve on the Chainalysis board of directors.
