"Banks and fintechs have long deployed a suite of tech to flag suspicious transactions and ensure they're not catering to bad actors. Now, as crypto seeps into mainstream finance, these same institutions need software to monitor crypto transactions. A new startup called CipherOwl is helping to do just that, and, on Thursday, announced that it had raised $15 million to help businesses with crypto compliance."
"The venture firms General Catalyst and Flourish Ventures led the seed round, with participation from investors like Coinbase Ventures and Enlight Capital, among others. Leo Liang, cofounder and CEO of CipherOwl, declined to disclose at what valuation his company raised its round. "As we see a shift from a fiat ecosystem to a more on-chain payment infrastructure, there's going to need to be the same-or if not even more sophisticated-compliance and fraud systems," John Onwualu, principal at Flourish Ventures, told Fortune."
Banks and fintechs use technology to flag suspicious transactions and avoid serving bad actors. Crypto's integration into mainstream finance has increased demand for software that monitors on-chain transactions. CipherOwl raised $15 million in a seed round led by General Catalyst and Flourish Ventures, with participation from Coinbase Ventures and Enlight Capital. Cofounders Leo Liang and Ming Jiang previously worked at Cruise and Coinbase, where they built compliance software. Liang declined to disclose the company's valuation. Established competitors include Chainalysis, Elliptic, and TRM Labs, and large banks deepening crypto exposure are driving demand for more sophisticated compliance systems.
Read at Fortune Crypto
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