Forte, a firm specializing in regulatory compliance for blockchain-based projects, has completed the acquisition of Sealance Corp., a company known for its contributions to Web3 identity verification and privacy solutions. This move is expected to bolster Forte’s capabilities by integrating Sealance’s advanced zero-knowledge (ZK) technology into its compliance infrastructure.
Sealance is credited with developing the first ZK policy engine, a tool designed to ensure regulatory adherence within decentralized blockchain environments. The integration of this technology with Forte’s Rules Engine is set to enhance Web3 compliance by facilitating privacy-centric know-your-customer (KYC) verification and enabling secure management of on-chain identities. This advancement will support various blockchain applications, including real-world assets (RWAs), stablecoins, decentralized finance (DeFi), and institutional transactions, without compromising user privacy.
One of Sealance’s cofounders emphasized that the company has established a framework where trust, compliance, and privacy coexist harmoniously. He highlighted that the firm is driving innovation in tokenized identity and programmable compliance, addressing a key challenge in cryptocurrency adoption—gaining confidence in decentralized technologies.
He further explained that by leveraging advanced tools like zero-knowledge proofs, the company enables regulatory compliance through secure on-chain mechanisms while simultaneously safeguarding user privacy. He described this as the future of digital identity, crucial for establishing trust among both users and regulators.
During a discussion with GamesBeat, he elaborated on Sealance’s approach, noting that the firm’s compliance solutions operate independently of any specific blockchain. Utilizing ZK proofs, the system can verify identities, enforce policy compliance, and ensure transaction integrity without exposing sensitive user data. The technology is designed to analyze transactions, identities, and risk indicators in a privacy-preserving manner, revealing only the information necessary as per predefined policies. These policies remain publicly accessible and verifiable, ensuring transparency.
With Sealance’s identity verification technology, users can obtain credentials that enable them to interact across multiple platforms without repeatedly disclosing their personal details. The integration of this system with Forte’s comprehensive Web3 compliance solutions is expected to enhance its existing Rules Engine, KYC capabilities, and crypto-fiat transaction infrastructure.
Forte’s chief executive officer expressed enthusiasm about the acquisition, emphasizing the expertise of Sealance’s team in cryptography and information security. The CEO underscored that Sealance’s technology represents a major step forward in achieving higher standards of privacy and compliance for decentralized transactions.
Previously serving as Forte’s chief financial officer, the CEO transitioned into the leadership role following a strategic decision to expand beyond gaming and reinforce the company’s strengths in regulatory compliance. The previous cofounder stepped into a broader ecosystem role in late 2024 to align with the firm’s evolving vision. According to a company spokesperson, this leadership shift reflects Forte’s focus on fintech and financial services.
Forte initially garnered significant attention in 2021 when it secured $725 million in funding amid widespread enthusiasm for blockchain innovation. However, the company has faced scrutiny over its opaque business practices. Reports surfaced regarding undisclosed acquisitions, including the purchase of Phoenix Labs, which later experienced unexpected layoffs. Additionally, Forte quietly acquired Rumble Games, further raising questions about its operational transparency.
In its latest statement, Forte reiterated its commitment to providing secure blockchain environments through its Rules Engine. This solution enables developers to establish safe on-chain ecosystems, regulate digital asset economies, and mitigate risks such as market volatility and malicious activity. The Rules Engine supports all Ethereum Virtual Machine (EVM)-compatible blockchains and Web3 wallets, equipping developers with the necessary tools to build secure, sustainable digital economies that foster community trust.
The Forte Rules Engine is now available for developers, who can learn more about the ZK integration by visiting: forte.io/developers/zk.
Green said his company started in 2020, in the midst of the pandemic, to build a technology that could bring more privacy and trust to blockchain transactions. Hackers had a field day in cryptocurrency circles, and so security and compliance became more important.
“We just got to the point where we were signing on [stablecoin customers] and then we joined Forte,” Green said.
Green noted that when you do a transaction on a regular cryptocurrency network like Ethereum, you don’t know who you’re talking to, and you don’t know if the person sending you money is really doing it.
“We created these basic pools which we call compliant pools,” he said.
There are pre-screened people who have been checked for anti-money laundering compliance. With know-you-customer rules, a person has to provide identification, fingerprints or other verifying data. Once they’ve been cleared, they don’t have to do it again. And rather send this information over the blockchain where it could be viewed by everyone, Sealance encrypts the private information.
This is what is considered a “zero knowledge” proof, where someone is essentially prechecked and does not have to reveal identity information again, Green said. Most blockchain transactions are starting to use such ZK proofs.
When a person does another transaction, there’s a record of what they had done before. Sealance can check for any suspicious signs, but it can conclude it’s the same person again because the person is still in the compliance pool and doesn’t have to provide identification again.
Green said it’s kind of like being in the secure part of an airport. You present you ID at the security screening, but once you go inside you are trusted. You don’t have to constantly show an ID or your fingerprints etc. If there are some red flags, then the transaction gets more scrutiny. Otherwise, you can move about and do transactions inside the pool, which is secure. Sealance can combine its secure process with Forte’s Rules Engine, which works with Ethereum. And all of the information can be used in clearing transactions and people quickly as blockchain transactions become more plentiful.
“The Rules Engine works on the Ethereum side, and we’ve been focusing on the privacy side, the zero-knowledge side, and building these two things together and integrating them, and that’s what we’ve been focused on,” Green said. “We are building this combined system that works across multiple blockchains, gives privacy and also could enforce pretty complicated policies.”
Green said his team managed to do this with about six or seven people. It raised a round of money before, but the amount raised wasn’t disclosed. The price for Sealance also wasn’t revealed. Green said the timing is good. “My belief is that this is one of the big missing ingredients for mainstream adoption,” he said. “We cannot have adoption of cryptocurrency until we have compliance figured out. There’s just too much room for theft, and bad stuff can happen.”
