<p>Blockchain data analytics firm Elementus, which helps companies spot illegal transactions made with cryptocurrency, has raised $3.5 million in a new funding round.</p> <p>The <a href="https://fortune.com/2019/09/23/fidelity-affiliate-joins-3-5-million-investment-in-bitcoin-sleuthing-firm-elementus/">round</a> was led by Morgan Creek Digital, with participation from Avon Ventures, Stage 1 Ventures and Robot Ventures, among others. Elementus cofounder Mike Kalomeni was quoted as saying that Elementus is currently working with law enforcement agencies, and hopes to expand clients.</p> <p>“We came up with algorithms that let us know exactly the provenance of the funds, to an infinite number of [transaction] hops, automatically,” Kalomeni added.</p> <p>For instance, Elementus recently came up with a report, which <a href="https://www.theblockcrypto.com/tag/elementus">showed</a> that Huobi was by far the most used exchange for withdrawals from alleged cryptocurrency Ponzi scheme PlusToken, which has reportedly swindled over $2 billion from participants.</p> <p>The blockchain analytics space is growing. Earlier this month <a href="https://www.theblockcrypto.com/post/38327/blockchain-analytics-firm-elliptic-raises-23m-series-b-to-fund-asia-expansion">Elliptic</a> raised $23 million in Series B funding to expand into Japan and Singapore. <a href="https://www.theblockcrypto.com/linked/12646/blockchain-analytics-company-raises-15-million-to-expand-global-aml-solutions">CipherTrace</a>, on the other hand, recently raised $15 million, while <a href="https://www.theblockcrypto.com/daily/11339/chainalysis-scores-30-million-to-expand-into-u-k-with-new-research-and-development-lab">Chainalysis</a> closed a $30 million Series B round.</p>