The Series D funding round was led by investment firm Paradigm, with participation from existing backers Addition, Ribbit, and TIME Ventures, Chainalysis said. In November, the company had its Series C funding round of $100 million, which valued the company at $1 billion.
The company said that the cash injection will be used to provide enterprise data solutions to cryptocurrency businesses, financial services companies, and government agencies. “We’ll continue to invest in investigations and compliance software, but we’ll also build out new data products both for our existing customer base and new audiences,” said Michael Gronager, the firm’s co-founder and chief executive.
READ ALSO:270 Addresses Laundered $1.3bn Worth Of Cryptocurrency In 2020 - Chainalysis
Chainalysis is one of the largest U.S. cryptocurrency investigation firms building software to untangle messy blockchain transaction histories. Crypto transfer records are publicly available but difficult for laypersons to decipher without contexts, such as flagged wallet addresses and blacklisted coins.
The current boom in the cryptocurrency market has sponsored demand for technology such as that of Chainalysis. Government agencies use its products to bust bitcoin-linked crime rings while exchanges turn to it for help vetting and sometimes freezing stolen crypto. U.S. agencies are a particular cash cow: the FBI, Internal Revenue Service (IRS), Department of Homeland Security (DHS), and other federal offices spent over $10 million on Chainalysis in 2020, according to a report by CoinDesk.
Chainalysis said it has doubled its client base and hired 116 new employees over the past year and now covers 100 cryptocurrencies, encompassing about 90% of economic activity in the nascent asset class.
0 Comment(s)