CipherTrace

In September 2021, CipherTrace was acquired by Mastercard, a strategic move by the payments giant to bolster its capabilities in the digital asset space. The acquisition integrated CipherTrace's platform with Mastercard's cybersecurity solutions to help customers manage regulatory and compliance obligations associated with cryptocurrencies. Prior to the acquisition, CipherTrace had raised approximately $45 million in funding through several rounds, including a $27 million Series B in May 2021 led by Third Point Ventures.

The core of CipherTrace's business is providing blockchain analytics to identify and trace illicit transactions. Its clientele includes banks, cryptocurrency exchanges, financial institutions, and government and law enforcement agencies. The business model is centered on offering subscription-based access to its platform and tools. The company's product suite includes tools for anti-money laundering (AML), financial investigation, and compliance monitoring. For instance, 'CipherTrace Inspector' is a forensics tool for investigators, while 'Armada' helps financial institutions detect cryptocurrency-related risks within their payment networks. These products provide features like transaction risk-scoring, wallet tracing, and entity risk profiling, analyzing data from over 900 cryptocurrencies to assign risk levels to transactions based on their proximity to criminal activities, dark markets, or sanctioned entities.