CipherOwl raises $15 million to advance AI-driven crypto compliance

CipherOwl, a crypto compliance startup founded by former Coinbase and Cruise engineers Leo Liang and Ming Jiang, has raised $15 million in seed funding, led by General Catalyst and Flourish Ventures. The firm develops AI-driven tools to help financial institutions monitor blockchain transactions for suspicious activity as traditional banks expand into digital assets. Launched in 2024, CipherOwl addresses the complexities of crypto transactions that challenge conventional anti-money laundering tools. Their software leverages generative AI to flag risky transactions and produce easy-to-understand reports, which aids in compliance efforts and reduces costs. Despite facing competition from established firms like Chainalysis and Elliptic, CipherOwl has secured clients including Coinbase and OKX. With only eight employees, the startup emphasizes its AI-native approach to enhance transaction detection. The newly acquired capital will support hiring and product development in response to the growing need for crypto compliance infrastructure.

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