With the rise of Bitcoin, the Blockchain, an indestructible anonymous of sorts ledger that is the backbone to cryptocurrency, has also come to the forefront. With the anonymity of Bitcoin and other cryptocurrency the need to detect illicit activity amongst the users is of the utmost importance.
While a variety of startups are looking to make Bitcoin and Blockchain both easier to use and safer, the safety of the user base needs to start with detection. That’s what London and New York based startup Elliptic does.
“Elliptic uses graph analysis and machine learning to identify illicit activity in blockchain transactions. As more companies and governments around the world adopt blockchain technology, Elliptic’s data and analytics services will be in strong demand in both the private and public sector. This new capital will allow Elliptic to consolidate its position as the global benchmark in blockchain compliance, fraud detection, and investigations technology, and maintain its advantage in bringing confidence and clarity to the blockchain ecosystem.” The company said in a press release.
The company launched in 2013 and has already attracted the top Bitcoin exchanges and payment processors including the ones used by the largest companies that already allow Bitcoin for transactions, like Overstock.com.
Washington DC based Paladin Capital Group led the $5 million dollar funding round. Paladin Capital’s Managing Director, Lieutenant General (Ret.) Kenneth Minihan said, “Elliptic has demonstrated a powerful working product that can combat illicit activity on blockchains. Elliptic is a game-changer for blockchain and is already trusted by some of the smartest minds in law enforcement and compliance. We recognise that the firm’s monitoring capability will be an essential component of any blockchain in the future and we will help Elliptic to expand in the US, via our contacts and knowledge of US law enforcement and government agencies.”
Financial company Santander also participated in the round via their Santander InnoVentures fund.
“Distributed ledger technology, including blockchain, has huge potential to deliver cost savings and new ways of working across the global banking industry – but most blockchain applications today are still in the proof of concept stage,” said Mariano Belinky, Managing Partner of Santander InnoVentures. “For distributed ledger technology to achieve widespread use, compliance departments and regulators will demand independent monitoring capabilities to combat insider trading, fraud, and money laundering. Elliptic is an authority in this area. We are delighted to be working with the team to help realise the potential of this exciting new technology.”
Dr. James Smith, co-founder and CEO of Elliptic added, “Over the last three years we have built a top-tier client base. Our products have already been used to assess risk on blockchain transactions worth billions of dollars, and we have delivered key evidence in major criminal investigations in the US and Europe. Our new investors bring deep expertise in law enforcement, international financial services, and blockchain technology and we are excited to work with them on our next phase of growth. We have already been able to expand operations to the US and will continue to extend our portfolio of products.”
Check out Elliptic here.