Blockchain intelligence firm TRM Labs raises $70 million in extended Series B round

Blockchain intelligence firm TRM Labs raises  million in extended Series B round

Blockchain-based intelligence company TRM Labs has announced a $70 million expansion to its Series B funding round, bringing its total funding round raised to $130 million, the company announced on November 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 Goldman Sachs and former TRM investors PayPal Ventures, Amex Ventures and Citi Ventures participating. The expansion follows TRM’s $60 million Series B raise in December 2021 led by Tiger Global.

Funds will support product development and talent acquisition to deliver accessible tools to counter illicit finance and fraud, as well as demand for Incident Response services and training programs, the company said.

“Demand has never been stronger for solutions that help protect crypto users, thwart illegal actors and support blockchain-based innovation,” said Esteban Castaño, co-founder and CEO of TRM.

Since its first Series B round in December, the company has acquired CSITech – a crypto and blockchain forensics firm known for its expertise in blockchain forensics – and launched Chainsbuse, a free community fraud reporting platform.

TRM claims to provide blockchain intelligence solutions for law enforcement agencies, regulatory bodies, tax authorities and financial intelligence units worldwide, supporting the investigation and analysis of crypto-related fraud and financial crime.

Related: Blockchain forensics is the trusted informant in cryptocrime investigations

Christine Kang, principal at Thoma Bravo, said TRM’s blockchain intelligence solutions are becoming more important in the “rapidly evolving regulatory landscape” that is crypto.

Founded in 2018, TRM Labs claims to have recorded 490% year-over-year revenue growth. Members include former law enforcement officers from the UK’s National Crime Agency, INTERPOL, the Australian Federal Police, the IRS-Criminal Investigation, the US Secret Service and the US Department of the Treasury, among others.

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The growth of digital assets has left new users vulnerable to fraud, especially during bull markets. Data from Chainalysis reveals a decline in total crypto fraud revenue, which stood at $1.6 billion in 2022 in August, which equates to a 65% decline from the previous period. Investors are more likely to fall victim to fraud during bull markets when investment opportunities and outsized returns are most appealing to victims, according to the report’s authors.