Cryptocurrency Security Startup Fireblocks Raises $16mln
Fireblocks, which facilitates safe movement of cryptocurrencies, stated that it has received $16 million in funding to develop its infrastructure and increase the list of clients served.
According to the announcement, Fireblocks raised capital through Series A funding round from Cyberstarts, Tenaya Capital, EightRoads (Fidelity INTL), Swisscom Ventures and MState.
Some of the prominent customers of the cybersecurity firm include Novogratz headed crypto merchant bank Galaxy Digital and over-the-counter (OTC) digital trading platform provider Genesis Global Trading.
Regarding integration with other cryptocurrency exchanges, Fireblocks has stated as follows:
“Currently, Fireblocks is integrated with 15 digital asset exchanges and offers support for over 180 cryptocurrencies, tokens, and stablecoins.”
The media release asserts that more than $3 billion in cryptocurrencies have been swindled in the past one-and-a-half year by hackers, including 7,000 Bitcoins (BTC) looted (valued at $40,705,000 at that time) from popular cryptocurrency exchange Binance.
Regarding the need for a platform that streamlines fund movement, Michael Shaulov, CEO and co-founder of Fireblocks, said “While Blockchain based assets by themselves are cryptographically secure, moving digital assets is a nightmare.
After interviewing over 100 institutional customers, including hedge funds, broker-dealers, exchanges, and banks, we concluded that the current process is slow and highly susceptible to cyber-attacks and human errors.”
Finally, Shaulov asserts that his firm developed a system which “secures the process and simplifies the movement of funds into one or two steps.”
Notably, Komodo, provider of cryptocurrency wallet, successfully hacked itself to foil swindlers from looting its clients’ funds. Last month, Sean Coonce, cryptocurrency custodian BitGo’s engineering manager disclosed that he became a prey of a SIM switching hack.