Lockchain.ai Raises $5M Series A Funding, Led by White Star Capital

Lockchain.ai, an AI-driven blockchain risk management platform, has closed a $5 million Series A funding round. The investment will fuel the development of enhanced AI-driven compliance and security features for cryptocurrency traders and asset managers. White Star Capital led the round, with additional backing from Lerer Hippeau, Arrington Capital, Sonic Boom Ventures, and others.

Since launching in April 2024, Lockchain.ai has secured key clients, including Broadridge and GSR, while providing risk management insights to portfolios exceeding $2 billion in aggregate value.

The growing need for AI-driven compliance solutions

The volatility of the cryptocurrency market demands fast, data-driven risk management solutions, making AI a crucial tool for asset managers.

"Cryptocurrency continues to be an exciting market with incredible opportunities for growth and increased utilization. It is also volatile, making data, intelligence, and speed key to managing portfolio accounts at scale."

Andrew Howard, CEO of Lockchain.ai

By leveraging generative AI, the platform processes thousands of data sources in real time, offering traders:

• Instant risk alerts on market movements affecting their holdings.
• Predictive impact analysis of contagion risk.
• Automated event-driven responses with customizable playbooks and exit strategies.

Expanding capabilities with new funding

Lockchain.ai will use its Series A funding to expand platform capabilities, focusing on:

• Material Event Detection: Improved intelligence monitoring to track major events impacting digital assets, protocols, and counterparties.
• Accelerated Data Discovery: A unified viewer providing a comprehensive data repository, enabling faster due diligence and listing reviews.
• Automated Compliance Frameworks: Customizable risk and regulatory frameworks, including pre-built models for compliance with MiCA, NYSDFS, and ADGM regulations.

"With our Series A funding secure, we are focused on expanding key functional areas and enriching our detection and monitoring capabilities. Using an innovative and integrated security fabric, we'll enable greater predictive controls and realize true, portfolio-wide risk management capabilities."

Andrew Howard

A trusted partner in blockchain risk management

Lockchain.ai specializes in real-time due diligence and risk monitoring, offering traders and asset managers insights into security status, custodians, and counterparties.

"The Lockchain platform enhances our risk management practices for digital asset entities by automating and standardizing core processes. This strengthens our decision-making and empowers us to appropriately assess complex opportunities with speed and precision."

Sean Swift, Operational Risk Manager at GSR

Broadridge’s Global Head of Innovation and Strategy, Aviad Stein, highlighted the role of Lockchain.ai in advancing digital asset standardization and compliance, saying: "Their proprietary AI produces reliable and appropriate outputs in a scalable way and helps us continue our lead-first approach in progressing the state of compliance."

Strong investor support and industry backing

The Series A round solidifies Lockchain.ai’s position as a key player in blockchain security and compliance. White Star Capital, a leading investor in blockchain and fintech, expressed confidence in Lockchain.ai’s ability to shape the future of risk management.

"Lockchain is setting new standards for risk management in the blockchain space and we're pleased to be extending our support for the team."

Sep Alavi, Managing Partner at White Star Capital

With this investment, Lockchain.ai aims to scale its AI-powered compliance tools, enabling asset managers, traders, and regulators to navigate the evolving digital asset landscape with greater confidence.