TRM Labs doubles valuation to $2 billion as AI business takes off

TRM Labs has reached a $2 billion valuation after investors doubled the blockchain intelligence company’s value in less than six months, as its business expands from crypto forensics into AI-powered crime detection, according to Fortune.

The San Francisco startup raised $70 million in a Series C round at a $1 billion valuation in February and has since secured additional investment from existing backers. The size of the latest round was not disclosed.

Initially launched to help law enforcement trace crypto transactions, TRM Labs is now expanding into criminal intelligence as AI creates new ways for criminals to scale fraud and other illicit activity. CEO Esteban Castano said TRM continues to view blockchain intelligence as a long-term core business while treating AI as a new growth engine.

The company is developing a new investigations platform focused on criminal networks and AI-enabled financial crime. The platform is expected to be publicly announced in November and will help investigators identify fraud involving tools such as deepfakes.

It will also be designed to help law enforcement combat sextortion and child sexual abuse, which Castano said have risen sharply as AI tools have become more accessible.

Founded in 2018, TRM entered the blockchain forensics market alongside established players including Chainalysis, Elliptic and CipherTrace. It gained traction by helping investigators trace activity involving crypto assets such as Ethereum and Tron, in addition to Bitcoin.

The company expects to reach a $100 million annual recurring revenue milestone within the coming weeks. Castano said the higher valuation could also help the company recruit talent by demonstrating its rapid growth and its mission to use technology to combat crime.