Blockchain data analytics firm Elementus raises $3.5M in new funding

Investments • September 23, 2019, 8:45AM EDT
UPDATED: September 23, 2019, 8:58AM EDT
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Blockchain data analytics firm Elementus, which helps companies spot illegal transactions made with cryptocurrency, has raised $3.5 million in a new funding round.

The round was led by Morgan Creek Digital, with participation from Avon Ventures, Stage 1 Ventures and Robot Ventures, among others. Elementus cofounder Mike Kalomeni was quoted as saying that Elementus is currently working with law enforcement agencies, and hopes to expand clients.

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“We came up with algorithms that let us know exactly the provenance of the funds, to an infinite number of [transaction] hops, automatically,” Kalomeni added.

For instance, Elementus recently came up with a report, which showed that Huobi was by far the most used exchange for withdrawals from alleged cryptocurrency Ponzi scheme PlusToken, which has reportedly swindled over $2 billion from participants.

The blockchain analytics space is growing. Earlier this month Elliptic raised $23 million in Series B funding to expand into Japan and Singapore. CipherTrace, on the other hand, recently raised $15 million, while Chainalysis closed a $30 million Series B round.

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