Recent events and reports of billions of dollars of crypto theft have eroded some trust in the crypto industry. NYC-based Chaos Labs is working to provide crypto safety solutions and recently secured new funding to do so.
On Tuesday, the company closed a $20 million seed round from prominent names like PayPal Ventures and Coinbase, among other investors. Galaxy and PayPal Ventures co-led the round.
Founded in 2021, Chaos Labs provides automated security tools for crypto protocols. Protocols are a set of rules that allows computers to communicate with each other and allows for crypto to be exchanged. Like most software, protocols have security risks that hackers can exploit to steal funds.
Chaos Labs provides security for protocols by monitoring protocol health in real-time. The company also secures protocols by monitoring for market manipulation events, which take place when groups of people attempt to artificially influence the price of a cryptocurrency to make quick gains.
“As the world moves from the opacities of traditional finance to a more open DeFi system, financial risk management must advance accordingly,” Omer Goldberg, Chaos Labs’ CEO and founder, said in a statement. “We’ve built a team of expert security and infrastructure engineers, and we’re working to solve for this by bringing world-class security and risk practices in running simulations of millions of economic scenarios on-chain.”
With the fresh funding, Chaos Labs will expand its product offerings and build a suite of risk and security solutions for crypto platforms.
