Blockchain Intelligence Firm Chainalysis Raises $30 Million From Accel, Others


0

New York-based blockchain intelligence firm Chainalysis has raised $30 million in a Series B funding round led by venture capital giant Accel, the company confirmed in a post on Feb. 12.

The fresh funding will reportedly be used to expand Chainalysis’ corporate operations, which include a proprietary Know Your Customer (KYC) product that allows financial institutions and digital asset trading platforms to vet and verify the identity of their clients.

The firm reports that the latest funding round was led by Accel, “with participation from existing investors.”

Chainalysis reports that it also plans to open an office devoted to research and development in London, with Accel partner Philippe Botteri set to join the firm’s board of directors.

In an interview with American business magazine Fortune, Chainalysis CEO Michael Gronager revealed that whereas 90 percent of the firm’s revenue formerly came from clients in the law enforcement sector — who used Chainalysis’ blockchain analytics tools to track illicit use of cryptocurrencies — corporate clients now comprise the lion’s share of the business, at 60 percent.

Aside from diversifying research and products, Gronager told Fortune that Chainalysis was benefiting from the momentum of the burgeoning stablecoin sector. As previously reported, 2018 saw the proliferating issuance and adoption of new stablecoins — a type of crypto asset designed to experience less price volatility — either by being notionally fiat-collateralized or via an algorithmic peg.

Chainalysis’ CEO remarked:

“Born out of the ashes of [the crypto bear market and Initial Coin Offering downturn] was the stablecoin as another way to easily and safely create tokens. This ability to trade U.S. dollars against crypto is very powerful.”

While not disclosing financial specifics, Gronager told Fortune that Chainalysis’ revenue had grown threefold since April 2018, when it raised $16 million from Benchmark Capital to increase the number of cryptocurrencies it monitors. However, the company is yet to become profitable, he noted.

As reported, Chainalysis also conducts research into the blockchain sector. This January, a report from the firm argued that two — likely still active — organized hacker groups have reportedly stolen $1 billion in cryptocurrency, accounting for the majority of funds lost in crypto-related scams.

Chainalysis’ co-founder and COO, Jonathan Levin, notably declined to comment as to whether the firm had contributed to the U.S. Department of Justice investigation into the alleged use of Bitcoin (BTC) to fund purported interference in the U.S. 2016 presidential elections. In connection with said allegations, twelve Russian intelligence officers were indicted in July 2018.


Like it? Share with your friends!

0

What's Your Reaction?

hate hate
0
hate
confused confused
0
confused
fail fail
0
fail
fun fun
0
fun
geeky geeky
0
geeky
love love
0
love
lol lol
0
lol
omg omg
0
omg
win win
0
win
COINTELEGRAPH

Choose A Format
Story
Formatted Text with Embeds and Visuals
Video
Youtube, Vimeo or Vine Embeds
List
The Classic Internet Listicles
Open List
Submit your own item and vote up for the best submission
Countdown
The Classic Internet Countdowns
Poll
Voting to make decisions or determine opinions
Ranked List
Upvote or downvote to decide the best list item
Personality quiz
Series of questions that intends to reveal something about the personality
Trivia quiz
Series of questions with right and wrong answers that intends to check knowledge
Meme
Upload your own images to make custom memes
Audio
Soundcloud or Mixcloud Embeds
Image
Photo or GIF
Gif
GIF format