TRM Labs doubles valuation to $2 billion thanks to AI

Blockchain analysis firm TRM Labs, known for tools that help law enforcement agencies trace crypto-related crime, has doubled its valuation to $2 billion. That is double the roughly $1 billion valuation the company achieved less than six months ago after a $70 million Series C funding round. The growth is driven in part by a rapidly expanding AI-powered investigative services arm.

In short:

• TRM Labs raises additional funding from existing investors, doubling its valuation to $2 billion.
• The company expects its annual recurring revenue to surpass $100 million in the near future.
• In November, TRM Labs will launch a new platform focused on detecting AI-related financial fraud, including deepfake scams.

Existing investors double down

CEO Esteban Castano said in an interview with Fortune that the new funding comes from existing shareholders. He did not disclose the exact amount, though he described it as modest. In his view, the funding round is not so much about raising capital as it is a signal to the market that TRM Labs is on track.

The company currently employs around 500 people and has offices in London, Singapore and Washington. Castano expects annual recurring revenue to pass the $100 million mark soon.

From crypto forensics to AI crime fighting

TRM Labs was founded in 2018 and distinguished itself from rivals such as Chainalysis by focusing early on newer blockchains such as Ethereum and Tron. Now the company is broadening its focus to AI-driven crime.

Castano says AI makes it easier for criminals by lowering two traditional barriers: the time and expertise required. Deepfake fraud, sextortion and online child sexual abuse are rising sharply, he says, due to the rise of AI tools. In November, TRM Labs will launch a new platform designed to help law enforcement agencies and banks tackle this type of digital crime.

Competition and government contracts

TRM Labs’ growth is playing out against a backdrop of tension with rival Chainalysis. That company previously publicly criticised a contract by the US immigration service ICE, which reportedly awarded TRM Labs an assignment worth around $95 million for blockchain analyses without a public tendering procedure.

Castano said the core crypto business of TRM Labs continues to perform strongly. At the same time, he sees AI as a second growth pillar, not a replacement. “Blockchain intelligence is a business for multiple decades. We want to build a company that lasts for generations,” said the 35-year-old CEO.