CipherTrace and Modulus partner to provide AML to crypto exchanges

Modulus, a US-based developer of trading and surveillance technology which powers global equities, derivatives and cryptocurrency exchanges, today announced CipherTrace as its newest technology partner. CipherTrace develops an Anti-Money Laundering (AML) solution that will be included in Modulus’ crypto exchange solution.

The CipherTrace technology identifies and scores a variety of AML risks, including criminal activity, dark markets, money laundering and mixing services, stolen cryptocurrencies, terrorist financing, gambling services, ransomware, and investment scams.

“CipherTrace’s anti-money laundering solution will help our customers maintain a low-risk profile, enabling them to safely grow their exchanges. Our exchange solution has broken records as the fastest and most scalable in the world. Now we are breaking records as the safest and most secure solution in the industry.”

Richard Gardner, CEO of Modulus

Earlier this summer, Modulus launched its own market surveillance and risk management solution with latency pre-trade and at-trade risk management, as well as post-trade surveillance with anti-money laundering capabilities. The solution, which utilizes machine learning to identify and combat market manipulation, abusive trading behavior, and money laundering, will work in conjunction with the CipherTrace technology.

“All of the nearly one billion dollars of cryptocurrency stolen so far in 2018 needs to be laundered before criminals can spend it. Exchanges represent fertile ground for money laundering because their significant volume and extreme velocity provide excellent cover for criminals. At CipherTrace, we have been working closely with regulators to provide a comprehensive crypto asset risk framework. Now, we are proud to be working with Modulus to deliver our vision of enabling a safe and secure crypto economy.”

Dave Jevans, CEO of CipherTrace

Last week, a report from the New York Attorney General’s office noted that the cryptocurrency industry “has yet to implement serious market surveillance capacities, akin to those of traditional trading venues, to detect and punish suspicious trading activity. A platform cannot take action to protect customers from market manipulation and other abuses if it is not aware of those practices in the first place.”

“Modulus has always taken seriously its responsibility to provide industry-leading protection against money laundering and market manipulation,” explained Gardner. “This OAG report only highlights concerns we’ve been talking about for years. Now, with CipherTrace included as part of our crypto exchange solution, customers will have additional peace of mind that they are utilizing cutting-edge technology to safeguard investors from the malfeasance of bad actors.”

“CipherTrace is excited to partner with Modulus Global and its crypto exchange customers. The CipherTrace Anti-Money Laundering solution is plug compatible with the Modulus Exchange platform and allows exchanges to safely grow their businesses while meeting the AML requirements of Government Regulators. The CipherTrace AML solution is available immediately to risk-score both Bitcoin and Ethereum transactions. Now exchanges can safely participate in crypto asset business and minimize potential future liability.”

Stephen Ryan, COO of CipherTrace

Modulus has been developing high-frequency trading systems, exchanges, trade surveillance systems, and risk management systems for over twenty years. Clients include Goldman Sachs, Merrill Lynch, JP Morgan Chase, Bank of America, Barclays, Morgan Stanley, HSBC, TD Ameritrade, CME Group, and thousands of other clients in over 90 countries.

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