Blockchain security company CipherTrace has reeled in $15m in venture capital funding led by Aspect Ventures.
Other commitments to the round came from firms including Galaxy Digital, Neotribe Ventures, and WestWave Capital. As part of the investment, Aspect Ventures’ Mark Kraynak will join the company’s board of directors.
With the funds from this round, the company will look to expands its global presence and increase product services.
CipherTrace designed cryptocurrency intelligence, AML, blockchain analytics and forensics, and compliance solutions. Its services are used by governments, regulators, law enforcement investigators and auditors to enforce AML laws and combat fraud. Cryptocurrency exchanges also utilise CipherTrace to comply with AML.
The platform’s blockchain analytics de-anonymise funds flow by gathering millions of data points each week and then applies machine learning technology to trace legitimate entities and illegal players.
Galaxy Digital co-head of principal investments Greg Wasserman 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.”
Last year, CipherTrace formed a partnership with IdentityMind to support AML in cryptocurrency. Together, the companies aim to provide AML analysis tools for cryptocurrencies, helping to assess the risk of a wallet and address involved in a transaction. It provides a risk score and ensures both sides of the transaction are no connected and alerting when predefined dollar limits are reached.
