Today, blockchain data platform Chainalysis announced that it has raised $170 million in a Series F funding round led by GIC., a Singapore sovereign wealth fund, to build a crypto fraud detection platform and scale its global operations.
Chainalysis’ platform provides crypto exchanges, corporations, and government agencies with automated transaction monitoring, risk management, and business intelligence analysis to help them detect crypto fraud and money laundering.
For businesses, the use of blockchain analytics and transaction monitoring increases the visibility of cryptocurrency transactions, allowing cryptocurrency companies to detect criminal activity, block transactions, and comply with required regulations.
Recognizing fraud in a decentralized economy
The announcement comes as researchers estimate the global blockchain market will grow from $4.67 billion in 2021 to $163.83 billion in 2029, fueled by the Covid-19 pandemic and the rapid Further development of digital ledger technology is spurred on.
“Over the past year, the cryptocurrency industry has transitioned into the mainstream, with financial institutions invading space and new technologies like NFTs disrupting traditional markets,” said Chainalysis co-founder and CEO Michael Gronager.
As consumer and corporate adoption of cryptocurrencies increases, crypto providers and businesses are under increasing pressure from regulators and investors alike to combat fraud.
Chainalysis’ answer to fraud detection in an increasingly decentralized economy is to provide blockchain analytics to help businesses better understand how customers are using cryptocurrencies, which not only helps identify scammers but can also provide insights into improving the customer experience .
The leading blockchain analytics providers
Chainalysis is one of the fastest growing blockchain monitoring solutions on the market, now reviewing cryptocurrency transactions averaging $1 trillion per month and adding over 450 new staff over the past year to reach 700 in total.
However, the organization is not the only provider using analytics to help exchanges and businesses identify crypto scams.
One of the company’s key competitors is Elliptic, a blockchain analytics provider that can monitor over 500 crypto assets for signs of fraudulent activity. The organization most recently raised $60 million in a Series C funding round and claims that 66% of all crypto volume runs through exchanges running Elliptic.
Another competitor is TRM Labs, a digital asset and risk management provider that monitors crypto transactions with cross-chain analytics that allow users to monitor funds moving from one cryptocurrency to another, e.g. B. from Bitcoin to Ethereum or another Blockchain.
TRM supports over 900,000 digital assets across 23 blockchains and most recently announced it had raised $60 million in a Series B funding round in December 2021.
At this point, Chainalysis aims to differentiate itself from these vendors by expanding the dataset its intelligence solution uses.
For example, the organization recently deepened its coverage to support DeFi identifications, which include 100 percent coverage of the top 15 DEX liquidity pools while also covering credit and oracle logs and yield aggregators.
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