Blockchain-based intelligence firm TRM Labs has announced a $70 million increase in its most recent Series B funding round, bringing the total raised to $130 million, the firm announced Nov. 9. Among the world’s largest private equity firms, Series B investor Thoma Bravo manages more than $122 billion in assets.
The round was led by Thoma Bravo, with participation from Goldman Sachs and previous TRM investors PayPal Ventures, Amex Ventures and Citi Ventures. The expansion follows the raising of USD 60 million Series B TRM in December 2021, led by Tiger Global.
The funds will support product development and talent acquisition to provide accessible tools to counter illicit finance and fraud, as well as demand for incident response services and training programs, the company said.
“The demand for solutions that help protect cryptocurrency users, deter illicit actors, and support blockchain-based innovation has never been stronger,” said Esteban Castaño, co-founder and CEO of TRM.
Since the initial Series B round last December, the company has acquired CSITech – a cryptocurrency and blockchain research firm known for its expertise in blockchain network forensics – and launched Chainsbuse, a free scam reporting platform powered by community.
TRM claims to provide blockchain intelligence solutions for law enforcement agencies, regulators, tax authorities, and financial intelligence units around the world, supporting investigations and analysis of cryptocurrency-related fraud and financial crimes.
Christine Kang, director of Thoma Bravo, said that TRM’s blockchain intelligence solutions are increasingly important in the “rapidly evolving regulatory landscape” that is the crypto space.
TRM Labs was founded in 2018 and claims to have posted 490% year-over-year revenue growth. Its members include former law enforcement officers from the UK National Crime Agency, INTERPOL, the Australian Federal Police, IRS-Criminal Investigation, the US Secret Service and the US Treasury Department, among others. .
The growth of digital assets has made new users vulnerable to scams, especially during bull markets. Data from Chainalysis reveals a decline in total scam revenue in the cryptocurrency sector, which stood at $1.6 billion in 2022 as of mid-August, corresponding to a 65% decline from the prior year period. According to the report’s authors, investors are more likely to fall victim to scams during bull markets, when investment opportunities and exaggerated returns are more attractive to attract victims.
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