Canada markets closed

Crypto Tracer Chainalysis Raises $13M as It ‘Doubles Down’ on Government Ties

Danny Nelson

Cryptocurrency intelligence firm Chainalysis said Tuesday it has raised $13 million in additional Series B financing from Ribbit Capital and Sound Ventures, bringing its total for the round to $49 million.

  • As part of the deal, the New York City-based company, which builds software that traces crypto transactions, is adding Ribbit Capital general partner Sigal Mandelker as an adviser. Mandelker is a former high-ranking Treasury Department official.
  • Chainalysis said the new investments will help it “grow and deepen its government relationships.” America’s federal agency alphabet soup frequently inks seven-figure software licensure deals with Chainalysis: The Internal Revenue Service and the Securities and Exchange Commission in the U.S. have together shelled out nearly $2 million in the past two months alone. 
  • There are signs that Chainalysis’ tracing tools are growing in use beyond the U.S. government. Reactor, its flagship investigative product, increased its revenue from new foreign government customers by 400% since 2019, according to the company.
  • Chainalysis has found more success plugging into the massively lucrative public sector money funnel than any other tracing firm. But the crypto analytics competition is growing: Coinbase closed its first U.S. government deal (with the Secret Service) in May.

See also: Crypto Forensics Firm Chainalysis Adds Tracing Support for Zcash, Dash

Related Stories