Blockchain security company CipherTrace secures $15M in venture capital

Blockchain security company CipherTrace has raised $15 million in the latest funding round led by Aspect Ventures.

The round also saw participation from Galaxy Digital, Neotribe Ventures, and WestWave Capital. Aspect’s Mark Kraynak will join CipherTrace’s Board of Directors.

CipherTrace was founded in 2015 and develops cryptocurrency intelligence, anti-money laundering (AML), blockchain analytics and forensics, and compliance solutions.

The company said that its 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 ensure compliance with AML laws. Banks use CipherTrace to mitigate threats related to customer cryptocurrency activity.

“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 U.S. Department of Homeland Security (DHS) Science and Technology (S&T) and DARPA initially funded CipherTrace. The company said that it will use the new funds to expand its global reach and extend product functionality.

"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."