Payments-Focused Cybercrime Startup Locks Deal With Europol

Chainalysis, a cybercrime startup that’s focused on payments fraud across the digital currency space, has secured a deal with Europol’s European Cybercrime Center.

Because bitcoin is sometimes associated with money laundering and fraud cases, the agreement between Chainalysis and the center will act as a memorandum of understanding to target and prevent criminals from extorting consumers via fraudulent methods.

“This new collaboration is an important next step in the endeavor to move digital currencies out of the hands of the criminals and into the hands of consumers and blooming commerce,” said Michael Gronager, chief executive of Chainalysis.

According to a Europol report about cybercrime, bitcoin has been increasingly used by hackers who are targeting big businesses, particularly ones who run their organizations using cloud-based infrastructures. Where Chainalysis comes into the mix is to track the digital identities necessary to trace the criminal digital currencies. Using its software, the startup is able to detect and target suspicious behavior to combat the fraud.

Chainalysis also announced that it has raised $1.6 million in funding in a round that was led by Berlin-based VC firm Point Nine Capital. Other groups involved in the round include Techstars, Digital Currency Group, FundersClub and Converge Venture Partners.