Chainalysis secures extra $6m to close $36m Series B

Cryptocurrency compliance startup Chainalysis has raised a further $6m to close its Series B investment round on $36m.

The new funding was sourced from the corporate venture arm of MUFG, MUFG Innovation Partners and expansion venture capital firm, Sozo Ventures.

Chainalysis previously secured $30m through the round in February, which was led by Accel alongside fellow investor Benchmark. Benchmark had also led the company’s $16m Series A round in 2018.

The company 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.

The New York-based RegTech has said it will use the new funding to expand its operations in the Asia-Pacific region and intends to open a new office there.

“Cryptocurrency technology is global and inclusive by design,” said Chainalysis CEO Michael Gronager. “Our business was founded on the belief that in order for the industry to grow, all its stakeholders – governments, financial institutions, and cryptocurrency businesses – must be united in establishing ground truth for the industry.

“This strategic investment will strengthen our relationships with financial institutions in Asia in particular, and spearhead both our growth and the industry’s advancement in an important region.”

Last year, Chainalysis 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.

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