Chaos Labs Raises $55 Million Series A to Strengthen Blockchain Security, and other News

The round was led by Haun Ventures and included PayPal, Lightspeed, Galaxy Ventures and Wintermute. New partners include F-Prime Capital, Slow Ventures and The Spartan Group.

Chaos Labs, a New York-based cloud platform specializing in blockchain protection, has closed a $55 million Series A funding round.

On August 15, Chaos Labs posted the following on X:

“In this next chapter, Chaos Labs is doubling down on its commitment to scaling economic security through the novel productization of complex, service-heavy industries.

We’re heads down with our partners, building risk management that is real-time, responsive, and secure.…”

The startup provides risk management and economic security services for decentralized finance (DeFi) protocols such as Aave, GMX, and Jupiter. Using simulation-based assessments, Chaos Labs helps these protocols identify and prevent vulnerabilities, securing a cumulative transaction volume of $860 billion, $25 billion in loans and $35 million in incentives.

In a statement, Chaos Labs emphasized the need for more resilient systems for the DeFi sector to reach its full potential, noting that security updates must be more automated to cope with volatile market conditions and economic manipulation.

Crunch Lab Secures USD 3.5 Million in its First Round of Financing, Led by Multicoin Capital

Crunch Lab, a startup working with the artificial intelligence research platform CrunchDAO, has raised $3.5 million in its seed funding round.

Known for facilitating machine learning competitions on CrunchDAO, Crunch Lab will use the funds to accelerate its development and expand its network of collaborators. The company is in the prototyping phase with two financial institutions, which could generate an additional $2 million in recurring revenue annually, according to Jean Herelle, founder and CEO of Crunch Lab.

With this new round of funding, Crunch Lab will be able to advance its mission to transform the field of artificial intelligence research and establish itself as a key player in the field of decentralized finance, reports The Block.

Bubblemaps Reveals Sahil Arora’s Activities: USD 5 Million Earned by Promoting Meme Coins

Bubblemaps, a platform specializing in blockchain data analysis, has uncovered the activities of Sahil Arora, a Dubai-based entrepreneur who allegedly made more than $5 million using his network of celebrity contacts to promote meme coins.

According to the Bubblemaps report, Arora convinced figures such as Floyd Mayweather, Caitlyn Jenner and Iggy Azalea to endorse these cryptocurrencies, thereby inflating their value in the market. Taking advantage of the increased liquidity, Arora would quickly sell his holdings and reap hefty profits.

“1/ An investigation into Sahil, featuring unseen footage, who made $30M in 2024 by launching tokens for celebrities—most of which dumped to zero,” as posted by Bubblemaps via X.

Arora’s modus operandi was simple but effective: he controlled the majority of the supply of each coin he promoted, and once celebrity endorsements skyrocketed in value, he sold his holdings from a primary address identified in the investigation.

Bubblemaps also uncovered an Instagram conversation in which Arora offered singer Jason Derulo $200,000 for a promotional tweet, illustrating his strategy to attract stars.

Chainalysis Reports Rise in Theft and Ransomware in 2024

Cryptocurrency theft and ransomware attacks are booming, according to a recent report from Chainalysis.

Stolen funds reached $1.58 billion, nearly double the $857 million recorded last year. Cybercriminals appear to have refocused on centralized exchanges, with bitcoin accounting for 40% of the volume stolen.

As for ransomware, Chainalysis predicts that 2024 could set a record in revenue, highlighting a historic payment of USD 75 million to the Dark Angels group.

Chainalysis warns that while illicit transactions have declined, bad actors continue to innovate their tactics.

By Audy Castaneda