CipherTrace Raises $15M Venture Capital Investment for Cryptocurrency and Blockchain Security, Intelligence, and Regulatory Compliance

Blockchain Security Firm Raises Growth Capital from Top Blockchain
and Cybersecurity Venture Capitalists

MENLO PARK, Calif.–(BUSINESS WIRE)–lt;a href=”https://twitter.com/hashtag/AML?src=hash” target=”_blank”gt;#AMLlt;/agt;–Blockchain security company CipherTrace fully emerges onto the world
stage with the announcement of major venture capital financing to fund
rapid growth. The company has raised $15M in venture capital from top
Silicon Valley and New York venture capital firms with deep
cybersecurity and crypto asset expertise. The round was led by Aspect
Ventures and includes other notable investors such as Galaxy Digital,
Neotribe Ventures, and WestWave Capital. Aspect’s Mark Kraynak will join
the Board of Directors.

CipherTrace develops cryptocurrency intelligence, anti-money laundering
(AML), blockchain analytics and forensics, and compliance solutions.
These products are used by government, regulators, law enforcement
investigators and auditors to enforce AML laws, combat crime and reduce
fraud. Cryptocurrency exchanges also use the platform to comply with AML
laws. Banks use CipherTrace to mitigate threats related to customer
cryptocurrency activity.

CipherTrace blockchain analytics de-anonymize funds flow by actively
gathering millions of data points weekly, and then applying machine
learning to its massive data pool to trace flows to legitimate entities
as well as criminal enterprises. CipherTrace was founded in 2015 by
experienced entrepreneurs from the security and FinTech industries. The
team at CipherTrace first began tracking Bitcoin criminal activity in
2011.

“CipherTrace is pleased to announce this strong backing from top-tier
investors who share our vision that cryptocurrencies and blockchains
need to be secured, regulated, and made safe so that they can scale
globally,” said David Jevans, CipherTrace CEO. “Our investors have
decades of experience investing in proven teams and technology companies
in the Internet security and financial technology industries.
CipherTrace will join the ranks of these successful companies.”

Funds to Meet Rapid Growth and Customer Demand

As the emerging leader in cryptocurrency security, intelligence and
regulatory compliance, CipherTrace has been growing rapidly and
profitably given the unprecedented global demand for its products and
services. The company will use the new funds to expand its global reach
and extend product functionality.

“Galaxy Digital is a CipherTrace customer and an investor,” said Greg
Wasserman, Co-Head of Principal Investments at Galaxy Digital.
“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.”

“Great blockchain companies will be forged as crypto assets achieve
mainstream adoption,” said Mark Kraynak at Aspect Ventures. “We believe
security and compliance with anti-money laundering and other financial
regulations, as enabled by CipherTrace, will be a key first hurdle to
mass adoption.”

“The CipherTrace team executes better than 99% of venture-backed
start-ups,” said Aditya Singh of Neotribe. “This successful management
team has worked well together at previous startups and has visible
operational and scaling advantages over their less-experienced
competitors.”

Warren Weiss from WestWave Capital said, “I am pleased to be able to
work with this elite team of cybercrime experts. It is exciting to watch
them make sense of and navigate this extremely high growth and rapidly
evolving global regulatory landscape.”

Tuff Yen of the Seraph Group said, “We backed this management team at
IronKey and are confident it their ability to win in this market.”

About CipherTrace

CipherTrace develops cryptocurrency Anti-Money Laundering,
cryptocurrency forensics, and blockchain threat intelligence solutions.
Leading exchanges, banks, investigators, regulators and digital asset
businesses use CipherTrace to trace transaction flows and comply with
regulatory anti-money laundering requirements, fostering trust in the
cryptocurrency economy. Its quarterly CipherTrace Cryptocurrency
Anti-Money Laundering Report has become an authoritative industry data
source. CipherTrace was founded in 2015 by experienced Silicon Valley
entrepreneurs with deep expertise in cybersecurity, eCrime, payments,
banking, encryption, and virtual currencies. The U.S. Department of
Homeland Security (DHS) Science and Technology (S&T) and DARPA initially
funded CipherTrace, and it is backed by leading Silicon Valley venture
capital investors. Visit www.ciphertrace.com
for more information or follow the company on Twitter: @CipherTrace
and LinkedIn: CipherTrace.

About Aspect Ventures

Aspect Ventures, a leading venture capital firm in Silicon Valley, was
founded in 2014 by two Silicon Valley venture capital veterans. Aspect
raised its first institutional fund of $150 million in 2015 and a second
investment fund of $200 million in 2018. Aspect invests across a broad
array of industries including cybersecurity, future of work, digital
health, and several other emerging technology areas. Current portfolio
companies include cybersecurity providers ForeScout Technologies (FSCT),
Cato Networks, Exabeam, ShieldX, Integris; future of work-focused
companies Crew, Gusto, Chime, The Muse and Troops; and digital health
startups such as Vida Health, Grokker, and Solv. Artificial intelligence
serves as the foundational technological platform for several of
Aspect’s investments targeting key verticals, including companies like
healthcare data provider Amino, future of work focused companies such as
Troops and Qordoba, and autonomous vehicle software provider Mapper.
Taken together, the track record of the firm’s investment team includes
12 IPOs, 30 successful acquisitions, multiple billions in public market
cap, and over 500 rounds in follow-on capital raised for portfolio
companies.

About Galaxy Digital

Galaxy Digital is a diversified, multi-service merchant bank dedicated
to the digital assets and blockchain technology industry. Galaxy
Digital’s team has extensive experience spanning investing, portfolio
management, capital markets, operations, asset management, and
blockchain technology. Galaxy Digital currently operates four distinct
business lines, which include: Trading, Asset Management, Principal
Investments and Advisory Services. Galaxy Digital’s CEO and Founder is
Michael Novogratz. The Company is headquartered in New York City, with
offices in Tokyo, Hong Kong, the Cayman Islands (registered office) and
New Jersey. Additional information about the Company is available on www.galaxydigital.io.

Contacts

Leslie Kesselring
Kesselring Communications for CipherTrace
[email protected]
or [email protected]
+1-503-358-1012

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