Web3 security service Blowfish raises $11.8 million to protect crypto wallets

Web3 wallet security provider Blowfish said today it raised $11.8 million to launch its service that protects against malicious transactions and fraud.

Crypto-focused venture capital firm Paradigm led the round with participation from Dragonfly, Uniswap Labs Ventures, Hypersphere and 0x Labs.

Blowfish provides firewall technology that monitors transactions by identifying dangerous transactions in real-time by providing users with warnings and human-readable context so they can react before something happens to their cryptocurrency.

Crypto wallets are fundamental to accessing crypto ecosystems because they allow users to store and manage digital assets, such as cryptocurrency tokens, using private keys, keeping them safe and accessible. They also allow users to send, receive and use cryptocurrency. Wallets are a prime target for hackers and fraud because they store the keys that access the token balances and allow trading and spending, so mitigating this danger can be very important for users and administrators.

Blowfish brings together a large number of developers and engineers from across the industry with experience in blockchain, cybersecurity and machine learning from Meta, Trail of Bits, 0x Labs and MakerDAO. Many of them have already worked on similar projects in monitoring Web3 and crypto transactions and developing reliable and secure infrastructure.

Using the service, wallet providers can connect to an application programming interface designed to detect and warn against a variety of attacks that precede fraud, hacks and potential loss of funds. Examples include phishing attacks, domain name service hijacking, software supply chain attacks, and more.

The company has already teamed up with Phantom, the Solana-based crypto wallet to protect users from potential scams. According to Blowfish, since the integration of the API, it has already scanned over 125 million transactions and stopped 11,000 attacks that could have caused losses to users.

“Blowfish has helped us protect thousands of our users from malicious fraud and scams. Their API is easy to use and reliable,” said Francesco Agosti, co-founder and CTO of Phantom. “We’ve partnered with them because we trust on their ability to continue building a great product that stays one step ahead of scammers.”

In particular, Phantom was a target in an attack that siphoned more than $6 million worth of cryptocurrency from Solana-based wallets in August. After an internal investigation, Phantom said that it No vulnerabilities detected in the wallet. Further investigation into the incident revealed that the Solana-based Slope wallet appeared to be the main source of the exploit.

With the new funding, Blowfish said it would upgrade its fraud detection engine for Solana, Ethereum and Polygon, making it even better at detecting fraud and expanding its service to even more blockchains. The company will also hire even more members to its team to continue expanding its product.

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