Chainalysis announced that it had secured $100 million in Series D financing that gives the company $2 billion in value.
The funding round comes just four months after the blockchain analysis and risk-management company raised a $100 million Series C financing at a $1 billion valuation, underscoring increasing demand for cryptocurrency compliance infrastructure.
The round was led by crypto-focused venture capital company Paradigm, with additional funding from Salesforce chief executive officer Marc Benioff.
Preventing illicit crypto transactions
Founded in 2014, Chainalysis helps private sector firms and government agencies monitor and prevent the use of bitcoin and other cryptocurrencies in illegal transactions such as money laundering using its detection software.
TIME Ventures, Marc Benioff’s investment fund, also took part in the latest funding, bringing the New York-based Chainalysis’ total raised to $265 million.
Chainalysis is one of the biggest cryptocurrency investigation companies in the United States, creating software to untangle disorganized blockchain transaction histories.
Chainalysis’s latest round marks the company’s fourth raise in less than two years. Benchmark and Accel also previously backed the startup.
“When we raised our last round, we’re basically seeing a lot of that in its infancy,” Michael Gronager, Chainalysis’s chief executive officer and co-founder, told CNBC during an interview.
Growing crypto adoption
According to Gronager, what Chainalysis sees is the market growing and that some traditional investors are “adopting cryptocurrency in a way we haven’t seen before.”
CipherTrace, Elliptic, and Chainalysis aim to make the cryptocurrency market a legit money-making space. The crypto market has been the victim of high-profile breaches and other nefarious activities.
In 2020, Chainalysis helped track down $1 billion worth of bitcoin tied to the dark web marketplace Silk Road, which was then shut down by U.S federal authorities.
Among Chainalysis’s 400 clients are financial institutions like Barclays, fintechs like Square and cryptocurrency businesses such as Bitstamp, BitPay, and Gemini.
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