Blockchain Security Startup Blockaid Raises $33 Million to Combat Malicious Transactions

Blockaid, a blockchain security startup and partner of the MetaMask cryptocurrency wallet, has secured $33 million in funding to scale its technology designed to stop malicious transactions. The Series A funding round was led by major industry venture capital firms, including Coinbase investor Ribbit Capital and early-stage VC firm Variant. Other funding members included Sequoia Capital, Cyberstarts, and Greylock Partners.

Blockaid Comes Out of Stealth with Strategic Alliance

Announcing the news on October 23, Blockaid revealed that its security platform is coming out of stealth with its inaugural customers, including MetaMask, the OpenSea marketplace, the Rainbow wallet, and the Zerion wallet. The startup has formed a strategic alliance aiming to provide security solutions for Web3 applications and protect users from malicious transactions.

MetaMask previously disclosed that it was collaborating with Blockaid and OpenSea in April 2023 to enable an experimental feature that would warn users when interacting with "known scams."

Funding to Improve Industry's Resistance to Hacks and Scams

The latest funding aims to help Blockaid further scale its blockchain security offering and improve the industry's resistance to hacks and scams. Founded in 2022 by alumni of Unit 8200 — the largest unit in the Israel Defense Forces — Blockaid is designed to be compatible with any blockchain network. Blockaid's security solution is also capable of detecting malicious decentralized applications and fully simulating off-chain signatures (EIP-712s).

"Blockaid protects users from fraud, phishing, and hacks," said Blockaid co-founder and CEO Ido Ben-Natan. He added that Blockaid has scanned 450 million transactions in the past three months, thwarted 1.2 million malicious transactions, and safeguarded $500 million in user funds that would have otherwise been compromised.

Blockaid's Unique Architecture Improves Security

"By proactively preventing malicious actions through our unique architecture, Blockaid improves with every transaction, enabling developers to build great products without having to worry about security," said Ben-Natan.

Consensys managing director Dror Avieli also noted that reducing fund loss incidents in MetaMask is a Consensys-wide initiative that has been spearheaded by Blockaid. Avieli added that Blockaid has pushed their team to new heights and continues to make users more secure than ever in Web3.