CipherTrace acquired by MasterCard
Who is CipherTrace - they were started in 2015 in Menlo Park, California as a Blockchain Analytics & Cryptocurrency forensics firm. They were funded in part by US DHS (Department of Homeland Security) along w/ $15M of funding. They quickly ramped up and won their first $1M contract, They have been a member of the Blockchain Alliance since '16.
What does CipherTrace do? Their Main Objective is to fight Crypto Crime - https://ciphertrace.com/about-us/
Were they fiscially sound? They had 71 employees and had annual net revenue of $10.3M. So not bad with roughly $140K earned per employee.
Mastercard - one of the two lead credit card firms, has in my mind be playing catch-up in the Crypto realm to Visa.
Why acquire CipherTrace ? If it is not apparent, this tool set is required to stay relevant in the new digital world they will not walk away from all their current tools as those systems will be in place for years to come. Additionally, the CipherTrace tools will help with compliance as regulations are rolled out here in the US and abroad.
CipherTrace competition - Who competed well against CipherTrace? I see the top four being
- Chainalysis
- Elliptic
- Glassnode
- Neutrino srl
Summary - The fast paced, always on, 24/7 world of Crypto's requires a different take on tools not just for AML, but the forensics at the exchange level to be able to track the bad actors. A smart acquisition by Mastercard, I look for more good things in this industry. Some organic and others thru M&A.
Disclaimer - I am NOT an agent of MasterCard nor CipherTrace, just a willing participant on the crypto journey
