The deal was signed with AnChain.AI and has an initial value of $125,000, plus five distinct one-year $125,000 option years for a total of $625,000. The company is a blockchain business based in San Jose that focuses on tracking illegal activities across crypto exchanges, DeFi protocols, and traditional financial institutions.
A Susquehanna Group affiliate recently secured over $10 million at an undisclosed valuation to enhance its IT stack.
AnChain.prediction AI’s engine claims to discover unknown addresses and transactions that may be suspicious, in addition to tracking established crypto wallets linked to hackers and criminal actors.
This structure enables the company to become a predictive product that warns of looming threats rather than a post-incident one, which appears to have aroused the SEC’s interest.
It is one of the first instances of a government entity enlisting the help of a blockchain player to search for illegal transactions, and it is part of a larger recent push to regulate the crypto sector.
“The SEC is highly interested in knowing what is going on in the realm of smart contract-based digital assets…so we are giving them technology to evaluate and trace smart contracts,” said Victor Fang, CEO and co-founder of AnChain.AI, in a statement.
Earlier this month, SEC Chairman Gary Gensler warned that DeFi operators were similar to “promoters” and “sponsors” who were involved in both the creation and marketing of their enterprises to the general public.
“There is still a core group of people that not only write the software, such as open-source software, but they frequently have governance and fees…
“There is some sort of incentive system in the centre of this for those promoters and sponsors,” said Gensler at the time.
“Frankly, at this time, it’s more like the Wild West,” he said
The comments are a far cry from what DeFi projects are meant to be—or, at the very least, what the DeFi mindset truly is.
Proponents foresee a completely decentralised, multi-trillion-dollar financial environment in which smart contracts handle payments, loans, exchanges, tradings, and other services, and where there are no physical or identification boundaries.
But lofty goals breed lofty characters, so who is to blame if regulation infiltrates an otherwise idealised picture of the world’s financial system?