Wells Fargo -New York

Wells Fargo Backs Crypto Risk Management Firm in $28m Raise

Wells-Fargo - Crypto RiskWells Fargo Strategic Capital, the bank’s ‘specialized capital provider’, has invested in Elliptic, the leading provider of crypto risk management solutions who has recently identified $400 million of illicit activity in XRP transactions.

Wells Fargo joined the Series B funding round, bringing the total amount raised to over $28 million. Existing investors include Tokyo-based SBI Group and Santander InnoVentures. The portfolio of investors and this latest round will help Elliptic to hire the resources needed to accelerate the roll-out of a new risk management solution for financial institutions, called Elliptic Discovery.

The solution provides compliance teams with insights to identify any flow of funds into and out of crypto-assets and to better assess the risk that they pose. Offering detailed transaction profiles of over two hundred global crypto exchanges, the solution enables financial institutions to better manage risk and meet stringent regulatory requirements.

James Smith, CEO of Elliptic, said: “We are proud to announce Wells Fargo’s investment in Elliptic. The partnership with our bank investors will further enhance our ability to better understand and work closely with financial institutions around the world to provide them with greater visibility into the cryptoasset ecosystem. Instead of leaving financial institutions in the dark regarding transactions in the emerging cryptoasset class, our aim is that Elliptic, working with financial institutions, will shine a light on any cryptoasset-linked transaction activity and enable them to manage risk accordingly.”

Basil Darwish, managing director, Wells Fargo Strategic Capital, added: “We are pleased to participate in Elliptic’s Series B financing round and to support their mission of developing innovative risk management solutions. Since its inception in 2013, Elliptic has been a pioneer in developing a distinctive array of data sets and transaction monitoring tools. We are excited to invest in Elliptic and to help them execute the next phase of their business plan.”

Founded in 2013, Elliptic’s pioneering suite of solutions is already used by over 100 clients worldwide to enhance the visibility and improve management of financial crime risk when identifying crypto-linked transactions.

In late 2019, Elliptic announced it found $400m of illicit activity using XRP. This, however, represents less than 0.2% of total XRP transactions, demonstrating that the vast majority of activity is legitimate. The Elliptic platform now supports over 85% of all crypto-assets, by market capitalization. Elliptic already supports a broad range of assets, including bitcoin, ether, litecoin, and tether.