- Solidus Labs raised $20 million in a Series A funding round.
- The Series A fund gained support from VCs and former US regulators.
- Also, Solidus aims to help get SEC approval for the first US crypto ETF.
Solidus Labs just closed a successful $20 million Series A funding round. The funding round drew participation from venture capitalists (VCs) and several former US regulators.
Notably, Evolution Equity Partners led the funding round. However, several top VCs like Hanaco Ventures, FTX, Avon Ventures, and 645 Venture also joined in. Of note, Hanaco led Solidus’ 2019 $3.75 million seed round.
Interestingly, the funding round also won interest from a handful of former US regulators. For instance, former CFTC Chair Christopher Giancarlo, former SEC Commissioner Troy Paredes, former CFTC Chief Innovation Officer Daniel Gorfine, among other angel investors.
In fact, Solidus aims to enable safe crypto markets by transforming financial risk monitoring, starting with crypto. Also, the startup believes that appropriate compliance and risk prevention tools will help drive mainstream crypto adoption. In an official report Solidus noted,
It’s not about barring the entry of investors, but rather about the ability to detect and prevent actual malicious activity, and being prepared not just for known forms of fraud and abuse, but also for new forms of crypto-specific threats. It requires crypto-native technology, machine-learning and most importantly, a forward-looking focus on the industry and its needs. That’s what Solidus Labs brings to the table.
In line with this, the US SEC has cited the lack of surveillance and monitoring as the key reason the regulatory body is yet to approve a crypto exchange traded fund (ETF) in the US.
Thus to solve this problem Solidus is utilizing machine learning to decipher how a complex network of trading accounts work. By leveraging AI and ML Solidus can detect and prevent manipulation. However, similar legacy tools like Chainanalysis, CipherTrace, and Elliptic only focus on reporting rather than prevention. As a result, this makes Solidus a game changer.