New York City’s crypto venture bank Galaxy Digital has invested $15 million in blockchain security company CipherTrace.

According to a press release published on Feb 19, the round was driven by giant Silicon Valley venture capital firm Aspect Ventures, with other remarkable investors such as Galaxy Digital, Neotribe Ventures, and WestWave Capital.

“CipherTrace is pleased to announce this strong backing from top-tier investors who share our vision that cryptocurrencies and blockchains need to be secured, regulated, and made safe so that they can scale globally,” said David Jevans, CipherTrace CEO.

Crypto security firm CipherTrace will use the new funds to expand its global reach and improve analytics and forensics products for cryptocurrencies and blockchains. As part of the funding deal, Mark Kraynak from Aspect Ventures will join the CipherTrace board of directors.  

“Appropriate anti-money laundering technology is critical for the mainstream adoption of digital assets. Institutional investors are increasingly looking to platforms like CipherTrace to monitor the integrity of transactions with their counterparties”, saying Greg Wasserman, co-head of principal investments at Galaxy Digital.

Established in 2015, CipherTrace is a crypto cybersecurity startup based in California. Leading exchanges, banks, investigators, regulators and digital asset businesses use CipherTrace to trace transaction flows and foster trust in the cryptocurrency economy, helping enforce anti-money laundering laws.

By gathering a range of data points and utilizing machine learning to crunch that data, the firm can de-anonymize blockchain-based transactions and trace flows of funds to “legitimate entities as well as criminal enterprises.”