Cryptocurrency

a16z Leads $51.5M USD Funding Round for Crypto Fraud Detection Platform

Other notable backers of Sardine include Visa, Consensys, Coinbase, and Revolut.

Cryptocurrency

a16z Leads $51.5M USD Funding Round for Crypto Fraud Detection Platform

Other notable backers of Sardine include Visa, Consensys, Coinbase, and Revolut.

Sardine, a startup focused on fraud detection and mitigation in the crypto space announced Tuesday, September 20, that it has raised over $51M USD in a series B funding round led by venture capital firm a16z.

Other notable contributors included Visa, Consensys, Uniswap, Google Ventures, and more.

The fraud detection platform was founded in 2020 by Soups Ranjan, who by his definition, was a “former fraud fighter” for both the Revolut App and Coinbase. Alongside his team, Ranjan has taken his expertise and scaled Sardine’s customer base by three times, launched crypto and NFT on-ramp products, and created what he says is a world-class fraud detection engine.

Furthermore, what makes Sardine unique is its approach to both Traditional Finance (TradFi) and Decentralized Finance (DeFi), to create interoperability between the two.

“The parallel financial systems mean everyone in financial services has a gap in the visibility that would allow them to prevent fraud and provide real-time experiences,” tweeted Ranjan, adding that “to truly prevent fraud, you have to understand both worlds. That’s where Sardine comes into play.”

According to data shared by the CEO, some areas of concern include consumers buying crypto with credit cards being declined over 50% of the time, self-custody wallets and DeFi projects struggling to access TradFi ecosystems, and fraud attacks against crypto wallets increasing by 70% since 2021.

Sardine aims to close the gap between the two financial sectors by providing real-time and risk-free payments, with the hopes of ushering in the next phase of growth for both industries. By providing increased visibility to data, for both parties, Sardine Ranjan says that fraud would be more easily detectable and preventable.

Ranjan shares that fraud is often detected too late, leads to bad payment experiences, and ultimately the loss of customers — all of which he and Sardine believe can be drastically reduced by more data transparency, which would inevitably lead to less fraud and more instant payments.

Currently, the platform boasts over 125 different customers, including industry leaders like FTX, Blockchain.com, Brave, WealthSimple, and more.

In other news, Nasdaq is launching a crypto custodial services division with a focus on minimizing anti-money laundering.

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