San Francisco-based blockchain forensics company TRM Labs stated that after completing additional financing on top of its previous round of funding, the company's valuation has risen to $2 billion. Compared to the $1 billion valuation at the time of its $70 million Series C financing about six months ago, the latest valuation has doubled. The company mentioned that the main reason for this change is the rapid growth of its AI related business.
From encrypted tracking to AI crime identification
TRM Labs initially provided blockchain forensics services mainly to law enforcement agencies to help track the flow of encrypted assets. The company CEO Esteban Castano told Fortune that TRM no longer defines itself merely as a blockchain intelligence firm; instead, it aims to cover a broader spectrum of cybercrime activities, particularly fraud that is amplified by AI tools.
According to him, AI is not just a shift in business direction, but rather a new growth engine for the company. TRM believes that with the widespread use of tools such as deepfake technology, the threshold for committing fraud, extortion, and online crimes related to minors is decreasing, and so is the demand from investigative agencies for new types of identification tools.
New platform plans to be announced in November
TRM Labs is launching a new investigation platform, targeting law enforcement agencies and financial institutions. This platform is primarily used to identify and block financial fraud driven by AI, as well as to investigate cases related to sexual extortion and child sexual abuse.
Castano indicates that AI makes criminal activities more accessible in terms of both time and technical barriers, which is also one of the reasons why the company has decided to expand its product range. TRM believes that the existing accumulation of on-chain data, partnerships with banks and law enforcement agencies, as well as an external network of collaborations, all contribute to its ability to enter this market.
Core encryption business is still growing.
TRM Labs was established in 2018. At that time, the blockchain forensics market already had participants such as Chainalysis, Elliptic, and CipherTrace. TRM's early differentiating approach was to cover newer blockchain networks like Ethereum and Tron earlier on, rather than focusing solely on tracking Bitcoin transaction flows.
The company stated that its core encryption business continues to grow and is expected to reach the $100 million annual recurring revenue ($ARR) milestone in the coming weeks. Castano also mentioned that the company hopes to attract more talent with the latest valuation to support its continued expansion in the two business areas of crypto investigations and AI anti-fraud.
- Latest valuation: $2 billion
- Previous Series C Financing: $70 Million
- Expected to reach $100 million in the coming weeks: ARR
Additional information:As of early September, TRM Labs had approximately 500 employees and offices in London, Singapore, and Washington.
