TRM Labs Reaches $1 Billion Valuation With $70 Million Series C Funding Round - Blockonomi
by Brenda Mary · BlockonomiTLDR:
Table of Contents
- TLDR:
- Law Enforcement Partnership Drives Market Position
- Private Sector Expansion Signals Future Growth
- TRM Labs secured $70 million in Series C funding led by Blockchain Capital and Goldman Sachs investors.
- The blockchain analytics firm now serves 40% private sector clients as tokenization adoption accelerates rapidly.
- FBI and IRS rely on TRM Labs technology to investigate thousands of cryptocurrency-related criminal cases annually.
- Company reports 500% increase in AI-enabled crypto scams, positioning itself for continued market expansion.
TRM Labs secured $70 million in Series C funding, reaching a $1 billion valuation. The blockchain analytics firm attracted investment from Blockchain Capital, Goldman Sachs, Bessemer, Brevan Howard, Thoma Bravo, and Citi Ventures.
The San Francisco-based company now joins the ranks of crypto unicorns. Its growth reflects increasing demand for blockchain intelligence across government and private sectors.
Law Enforcement Partnership Drives Market Position
TRM Labs carved its niche by supporting global law enforcement agencies in cryptocurrency investigations. The company emerged in 2018 when founders Esteban Castaño and Rahul Raina recognized the need for blockchain intelligence.
Their strategy focused on tracking multiple cryptocurrencies beyond Bitcoin, differentiating them from competitor Chainalysis.
Castaño explained their early thinking: “Then we asked ourselves, ‘What’s the second order consequence? The world would need intelligence to make sense of that data to ultimately manage risk.'”
Jarod Koopman, soon-to-be chief of criminal investigation at the IRS, confirmed the agency’s decade-long reliance on blockchain analytics.
“Without third-party tools, it would be infinitely more time-consuming and inefficient,” Koopman told Fortune. The IRS began using TRM Labs shortly after launch to diversify its analytical tools.
Koopman noted the strategy prevented putting “all of our eggs in one basket,” especially as criminals expanded beyond Bitcoin.
The FBI’s New York field office processes thousands of crypto cases annually, up from just a handful in 2015. Assistant Director James Barnacle highlighted TRM’s role following the October 7 Hamas attacks in Israel.
“The partnership between the FBI and the private sector is critical for us to be successful,” Barnacle stated. He emphasized that there’s nothing the FBI can accomplish entirely on its own in crypto investigations.
The company employs former government investigators, including Chris Janczewski, who led operations against child exploitation sites. This expertise strengthened TRM’s credibility with law enforcement agencies worldwide.
However, close ties with governmental agencies created friction within the crypto community. Many industry participants objected to TRM’s involvement in Hamas wallet tracking reports.
Castaño defended the company’s mission, arguing that “bringing security to digital assets is very much aligned with the crypto industry.”
Private Sector Expansion Signals Future Growth
TRM Labs reports that 40% of its customer base now operates in the private sector. This segment continues expanding as financial institutions explore tokenized assets.
The company’s revenue grew approximately 50% annually over the past four years. Blockchain Capital’s Spencer Bogart described TRM as “one of those things that becomes absolutely table stakes for anybody that’s going to be touching something in the space.”
The firm’s analytics tools serve compliance professionals and financial organizations entering blockchain technology. Wall Street’s embrace of tokenization creates new opportunities for TRM’s intelligence platform.
Ari Redbord, global head of policy, highlighted emerging threats: “We’ve seen a 500% increase in AI-enabled use in scams and fraud. This is a civilization-level threat, and we’re building the company for that moment.”
TRM published reports documenting widespread use of Tether stablecoin on Tron blockchain by cybercriminals. The company later partnered with Tether and Tron to combat illicit activity.
Critics questioned the decision, but Redbord maintained the partnership serves the core mission. “You don’t stop bad actors working only with the most regulatory-compliant places where there’s no illicit activity,” he explained.
Artificial intelligence presents both challenges and opportunities for blockchain analytics. Castaño emphasized the technology’s necessity in modern investigations.
“If you’re operating in a world where there’s trillions of transactions, how in the world do you find the needle in the haystack without using AI?” he questioned. With 350 employees, TRM continues building capabilities to address emerging threats in digital finance.