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CipherTrace Closes $27.1M Series B Funding Led by Third Point Ventures

UTC by Patrick Kariuki · 3 min read
CipherTrace Closes $27.1M Series B Funding Led by Third Point Ventures
Photo: CipherTrace / Twitter

CipherTrace’s intention is to expand its operations next one year while capitalizing on the growing cryptocurrency market.

According to CoinDesk, CipherTrace has just closed a Series B Funding round that was spearheaded by Dan Loeb’s firm, Third Point Ventures. Other companies involved in the funding round included Neotribe, Seraph, and Ascrew Capital. A spokesperson for Third Point Ventures emailed CoinDesk confirming the company’s participation in the funding round. Investment companies linked to Dan Loeb have so far supported three digital assets startups, among them eToro and Bitwise.

The company is a compliance tools vendor that mainly does business with cryptocurrency exchanges, financial services providers (including banks), and investigators linked to governments. The company uses artificial intelligence where wallet transactions are tracked with exposing client data with third parties. On security, Jevans said that his company only helps government investigators move from one point to the next, and that the duty of unmasking wallet-holders is with the courts.

With the new funding, the intention of CipherTrace is to expand its operations next one year while capitalizing on the growing cryptocurrency market, and it’s not the only one doing this. In the last three months, more players including Chainalysis and TRM Labs have also raised capital via funding rounds. On Monday this week, Blocktrace launched a new software while Elliptic announced the completion of a pilot project it had with Santander, a Spanish bank (the largest in the country).

Launching the intelligence software has been one of the company’s goals. In April, CipherTrace launched a platform meant for DeFi projects, sanctions compliance. The platform was supposed to be a marketplace for compliance tools, particularly for the Financial Action Task Force, Jevan revealed.

The financial watchdog announced rules that were to combat funding of terrorism and money laundering using cryptocurrencies. Another area of interest for CipherTrace was privacy coins. The company claimed it can easily reveal secrets surrounding Monero, a popular cryptocurrency among criminals. Jevan noted that together with his team, he fully backs Monero. However, he added that without proper oversight, the coin is headed for failure, and that tracing in conjunction with compliance tools is the only way out for Monero.

Dave Jevans, CipherTrace’s chief executive was quoted in a CoinDesk interview saying that it was great to be in their space. He further added that in the last one year, his company has gotten steady business from insurances and asset recovery companies, and that he’s now eyeing banks. The CEO added that the company is experiencing growth in all areas of operations and ended the interview by stating that without the compliance tools the market won’t flourish.

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Patrick Kariuki

Patrick is an accounting & economics graduate, a Cryptocurrency enthusiast, and a Blockchain technology fanatic. When not crafting informative pieces on any of the above subjects, he will be researching on how the Blockchain technology can transform the world, particularly the financial space.

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