Chainalysis Raises $100M in Series D Funding Round
- Led by Paradigm, the Series D funding round has brought the valuation of the firm to around $2 billion.
- The funds will help the firm expand its product portfolio and enterprise data offering, as well as grow its engineering team.
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Blockchain analytics firm Chainalysis has closed a $100 million Series D funding round, bringing its valuation to around $2 billion, the company said in a press release shared with The Chain Bulletin on 26 March.
According to the announcement, the new Chainalysis funding round was led by Paradigm, and saw participation from VC firms Addition Capital, Ribbit and Marc Benioff’s Time Ventures. The funding round — that brought the company’s valuation to $2 billion — follows closely after the firm’s $100 million Series C round, which in November 2020 boosted Chainalysis’ valuation to $1 billion. The CEO and co-founder of Chainalysis, Michael Gronger, said in a statement:
“We’ve collected more information about what happens on blockchains than anyone in the cryptocurrency industry. That information enables our customers to make better data-driven decisions. Our partners at Paradigm share our vision and understand that the data Chainalysis provides will enable accelerated adoption of cryptocurrency.”
The newly acquired funds will help Chainalysis accelerate its business growth, expand its product portfolio and enterprise data offering, as well as grow its engineering team. With its new products, the firm is looking to help not only crypto businesses, but asset managers, financial service providers and government agencies.
Chainalysis further claimed in its press release that it has more than doubled its year-over-year recurring revenue, and that it the past year has grown its client base to include government agencies in more than 30 countries, and private businesses in over 60 countries. Its solutions already encompass around 90% of the crypto economic activity, with then supporting over 100 digital assets across 10 native blockchains.
Earlier this week Chainalysis partnered with Bluestone Analytics, further boosting its visibility into dark web cryptocurrency transactions, and allowing it to connect the transactions to real-world entities.
- While there are still two weeks to go, Chainalysis data shows October has already become the biggest month for crypto crime, with $718 million being stolen across 11 hacks.
- 2022 was also close to becoming the most profitable year for crypto criminals, with 125 hacks being responsible for the loss of $3 billion.
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- The Series F round has more than doubled Chainalysis’ valuation since last year, which is not surprising considering it has increased its customer base by 75%.
- The company has claimed that its various tools are now responsible for monitoring around $1 trillion worth of transactions each month.
- Roman Semenov, co-founder of Tornado Cash, explained that the blockade only applies to the platform’s frontend, and not the underlying smart contract.
- The news came only a day after the Treasury Department alleged that North Korean hacker group Lazarus was connected to the $625 million Ronin bridge hack.