Chainalysis, a Blockchain intelligence company has recently carried out a Series B funding round to expand its corporate operations. The funding round was led by Accel, a renowned venture capital firm.
Chainalysis is a startup having 75-person involved in it. It has offices in New York, Washington D.C. and Copenhagen. It was founded in 2014 by Jonathan Levin, Jan Moller and Michael Gronager as a Software company. Chainalysis now works on the investigation of the cryptocurrency issues like money laundering, fraud and compliance violations. The firm provides such services to financial institutions, cryptocurrency exchanges and law enforcement entities. Chainalysis detects and investigates further in the cases related to fraud and money laundering.
Being a software firm, banks and brokers purchases its bitcoin-tracing technology and compliance software in order to oversee and link digital identities to cryptocurrencies.
With the raised amount in the funding round, the blockchain firm wants to facilitate a proprietary Know Your Customer (KYC) product, which will enable financial institutions and digital asset trading platforms to evaluate and verify the identity of their clients. The firm has special expertise in its ‘Chainalysis KYT solution’ for token issuers. For token issuers, this solution plays a vital role in dealing with regulatory requirements in multiple jurisdictions. Additionally, Chainalysis has also intentions to have an office in London for research and development.
Regarding the funding round, Chainalysis CEO and co-founder Michael Gronager noted,
“While other companies in our industry are pulling back, Chainalysis is investing in building foundational technology for the future of cryptocurrency. We are focused on empowering new cryptocurrency use cases like Stablecoins and supporting businesses and governments globally as cryptocurrency regulation becomes more defined.”
At an interview, the CEO said that formerly, 90% of the firm’s revenue was generated from clients in the law enforcement sector. They are the clients who already used to track illicit use of cryptocurrencies with the help of Chainalysis’ blockchain analytics tools. Moreover, one of a partner of the firm Accel has praised Chainalysis, saying that due to Chainalysis’s crypto expertise, the firm has rapidly become the benchmark for blockchain industry.