Folks Finance secures $3.2m in Series A to advance crosschain DeFi solutions

change communication methods during a verification check.Some identity verification solutions may also flag possible attempts to circumvent verification checks, such as the use of third-party webcam plugins, which can let a customer display previously generated video rather than live video. Use of Deepfake Media in Phishing Attacks and Scams Criminals may also target financial institution customers and employees through sophisticated, GenAI-enabled social engineering attempts in support of other scams and fraud typologies, such as business email compromise (BEC) schemes, spear phishing attacks, elder financial exploitation, romance scams, and virtual currency investment scams.24For example, in family emergency schemes, scammers may use deepfake voices or videos to impersonate a victim’s family member, friend, or other trusted individual.25Similarly, criminals have reportedly used GenAI tools to target companies by impersonating an executive or other trusted employee and then instructing victims to transfer large sums or make payments to accounts ultimately under the scammer’s control.26 Financial Red Flag Indicators of Deepfake Media Abuse FinCEN identified the following red flag indicators to help financial institutions detect, prevent, and report potential suspicious activity related to the use of GenAI tools for illicit purposes.As no single red flag is necessarily indicative of illicit or suspicious activity, financial institutions should consider the surrounding facts and circumstances before determining whether a specific transaction is suspicious or associated with illicit use of GenAI tools. A customer’s photo is internally inconsistent (e.g., shows visual tells of being altered) or is inconsistent with their other identifying information (e.g., a customer’s date of birth indicates that they are much older or younger than the photo would suggest). A customer presents multiple identity documents that are inconsistent with each other.

Folks Finance, a DeFi platform specialising in lending, borrowing, and managing digital assets across multiple blockchains, has announced it raised $3.2m in an oversubscribed Series A funding round.

The funding round brings the company’s valuation to $75m.

The funding round was led by Borderless Capital and included contributions from SOVO Ventures, Mapleblock, and Algorand Ventures, among others. This investment brings Folks Finance’s total funding to $6.2m, following a successful seed round in 2022.

Folks Finance provides a comprehensive suite of tools that enables users to manage their portfolios across various networks. Its xChain app is central to the company’s strategy, offering seamless crosschain lending, borrowing, and trading across networks like Avalanche, Base, Ethereum, Arbitrum, and BNB Chain. The platform plans to integrate additional networks in the near future, further enhancing its multichain ecosystem.

With the new funding, Folks Finance aims to expand its xChain app, addressing liquidity fragmentation issues by unifying liquidity across isolated ecosystems. The platform leverages technologies such as Chainlink CCIP, Wormhole, and Circle CCTP to enable users to deposit assets on one blockchain and borrow on another, providing unparalleled crosschain flexibility and efficiency.

Since its mainnet launch in 2022, Folks Finance has grown rapidly, boasting over 15,000 active wallets monthly and achieving a total value locked (TVL) peak of $220m. The platform’s suite includes lending, borrowing, swaps, liquid staking, and a fiat on/off ramp, providing users with a robust alternative to traditional centralised exchanges.

Amit Mehra, partner at Borderless Capital, said, “We’ve been proud supporters of Folks Finance since the very beginning. With a strong foundation in place, we see tremendous opportunities ahead for them to scale and expand their business. They’re tackling one of DeFi’s most pressing issues: the fragmentation of liquidity across isolated ecosystems. They are redefining interoperability by offering users an intuitive and seamless way to manage assets across multiple networks. This approach will drive a new standard in crosschain liquidity; we are excited for a future full of growth and innovation for Folk.”

Folks Finance CEO Benedetto Biondi said, “The future of DeFi is crosschain, and with the launch of our xChain App, we’re empowering users with unprecedented crosschain flexibility and efficiency. This round of funding will allow us to continue innovating and expanding our vision of a truly multichain DeFi hub.”

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