Blockchain Security Firm CipherTrace has raised $15 million in an investment round which included investment from popular blockchain-focused investment bank Galaxy Digital.
According to an official press statement released on Tuesday, February 19, CipherTrace stated that the $15 million investment round was led by Aspect Ventures while receiving investments from Neotribe Ventures, WestWave Capital, and Galaxy Digital.
CipherTrace is a cryptocurrency security-focused startup based in California. The firm develops cryptocurrency intelligence, anti-money laundering (AML), blockchain compliance, analytics and forensics solutions which are used by regulators, auditors, law enforcement and cryptocurrency exchanges to enforce compliance.
According to the statement, the firm which was founded in 2015 began tracking criminal activity on Bitcoin’s (BTC) blockchain in 2011. In its Anti-Money Laundering Report for the last quarter of 2018, CipherTrace revealed that $1.7 billion was lost through cryptocurrency theft and exit scams in 2018, at least 3 times more than the previous year.
Speaking on the investment round, David Jevans, the CEO of CipherTrace welcomed the investors who he said shared the vision that “cryptocurrencies and blockchains need to be secured, regulated, and made safe so that they can scale globally.”
On his part, the Greg Wasserman, co-head of Principal Investments at Galaxy Digital explained that:
“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.” while noting that his firm is not only an investor in CipherTrace but also its customer.
The cryptocurrency space seems to be taking a special interest in cryptocurrency security following the debacle unfolding at Canadian crypto exchange QuadrigaCX. The exchange announced that it does not have access to the wallets where up to $190 million worth of cryptocurrencies belonging to its customers are locked. According to the court filings, the founder and CEO who died recently was the only staff that had private keys to access the wallets.
As Smartereum reported Coinbase recently acquired blockchain analytics firm Neutrino to boost security and compliance. According to its announcement, the firm will operate as a standalone company out Coinbase’s UK office.
Also BitGo, a leading cryptocurrency security and custody service provider for institutional investors announced a comprehensive crypto insurance coverage in partnership with Lloyd’s Lloyd’s of London insurance market. The policy will provide up to $100 per incident including third-party hacks, copying, or theft of private keys, and insider theft.