Crypto Tracer Chainalysis Raises $13M as It 'Doubles Down' on Government Ties

Chainalysis is also adding former Treasury Department official Sigal Mandelker on as an advisor.

AccessTimeIconJul 7, 2020 at 3:30 p.m. UTC
Updated Sep 14, 2021 at 9:00 a.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

Cryptocurrency intelligence firm Chainalysis said Tuesday it has raised $13 million in additional Series B financing from Ribbit Capital and Sound Ventures, bringing its total for the round to $49 million.

  • As part of the deal, the New York City-based company, which builds software that traces crypto transactions, is adding Ribbit Capital general partner Sigal Mandelker as an adviser. Mandelker is a former high-ranking Treasury Department official.
  • Chainalysis said the new investments will help it “grow and deepen its government relationships.” America’s federal agency alphabet soup frequently inks seven-figure software licensure deals with Chainalysis: The Internal Revenue Service and the Securities and Exchange Commission in the U.S. have together shelled out nearly $2 million in the past two months alone. 
  • There are signs that Chainalysis’ tracing tools are growing in use beyond the U.S. government. Reactor, its flagship investigative product, has increased its revenue from new agency partners and foreign government customers 400% since 2019, according to the company.
  • Chainalysis has found more success plugging into the massively lucrative public sector money funnel than any other tracing firm. But the crypto analytics competition is growing: Coinbase closed its first U.S. government deal (with the Secret Service) in May.

Disclosure

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk offers all employees above a certain salary threshold, including journalists, stock options in the Bullish group as part of their compensation.


Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.