Chainalysis has raised $170 million to expand its crypto fraud detection platform

Chainalysis has raised $170 million to expand its crypto fraud detection platform ...

Chainalysis, a Singapore-based blockchain data company, has announced that it has raised $170 million in a Series F financing round. It has raised $8.6 billion in funding, which will enable the organization to invest in improving its crypto fraud detection platform and expanding its global operations.

Crypto exchanges, enterprises, and government agencies are provided with automated transaction monitoring, risk management, and business intelligence tools, which they can use to detect crypto fraud and money laundering.

Blockchain analytics and transaction monitoring have increased the visibility of cryptocurrency transactions, ensuring that cryptocurrency companies may identify criminal activity, block transactions, and comply with the necessary regulations.

Spotting fraud in a decentralized economy

The announcement comes as researchers anticipate that the global blockchain market will expand from $4.67 billion in 2021 to $163.83 billion by 2029, as a result of the Covid-19 epidemic and the rapid advancement of digital ledger technology.

According to Michael Gronager, the cryptocurrency industry has become a mainstream event as financial institutions enter the space and new technologies like NFTs are disrupting traditional markets.

Crypto providers and enterprises are under increasing pressure from regulators and investors to combat fraud, as the adoption of cryptocurrency by consumers and enterprises accelerates.

Chainalysis''s approach to detecting fraud in an increasingly decentralized economy is to provide blockchain analytics so that enterprises can have a better understanding of how their customers utilize cryptocurrency, which helps to identify fraudsters, but also provide insights into the customer''s experience.

The top blockchain analytics providers

Chainalysis is one of the fastest growing blockchain monitoring solutions on the market, with an average of $1 trillion worth of cryptocurrency transactions per month being examined and hiring over 450 new employees in the past year to reach a total of 700.

The organization isn''t the only provider that is using analytics to assist exchanges and companies in identifying crypto fraud.

Elliptic, a blockchain analytics company that can track over 500 crypto assets for signs of fraud, is one of the organizations'' key competitors. The organization most recently raised $60 million as part of a Series C funding round, which claims that 66% of total cryptocurrency volume is distributed through exchanges using Elliptic.

TRM Labs, a digital asset and risk management company, is a cryptocurrency organization that monitors cross-chain transactions, which allows users to monitor funds moving from one cryptocurrency to another, such as from Bitcoin to Ethereum or another blockchain.

TRM was established as a participant in a Series B funding round in December 2021, supporting over 900,000 digital assets across 23 blockchains.

By removing the dataset its intelligence solution uses, Chainalysis is attempting to seize from these providers.

For example, the organization has expanded its coverage to help define DeFi''s top 15 DEX liquidity pools, while also covering lending and oracle protocols and yield-aggregators.

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