BitGo raises USD 12 million in funding round

Thursday 19 June 2014 00:54 CET | News

BitGo, a Bitcoin-based security-as-a-service provider, has secured USD 12 million in new funding round to improve security services, reports.

The funding round was led by venture capital firm Redpoint Ventures and it attracted Barry Silbert’s Bitcoin Opportunity Corporation, Radar Partners, Liberty City Ventures, Crypto Currency Partners and Ashton Kutcher’s A-Grade Investments.

BitGo CEO Will O’Brien informs that, among other investors, Stratton Sclavos, former CEO of VeriSign Barry Silbert, was also present. The news follows BitGo’s addition of former Facebook employee Ben Davenport, who joined the company as head of product and co-founder in May 2014.

BitGo has received new board members, such as former VeriSign CEO Stratton Sclavos and Jeff Brody of Redpoint Ventures. Moreover, Ashton Kutcher is also a member of the board.

BitGo plans to offer institutional investors the opportunity to store Bitcoin in online wallets and access their holdings on short notice. The BitGo platform uses 3 keys to bolster security. One is held by the user, encrypted in their browser. The second is generated by BitGo and stored on its servers. Finally, the third key (or the cold key) is generated offline and it is only used for disaster recovery in case one of the other two keys is lost or compromised. In a transaction, BitGo acts as a co-signer. The user can also set up additional layers of security, such as spending limits and corporate treasury policies.

BitGo is a Bitcoin security platform that offers multi-sig security-as-a-service, online Bitcoin wallet and enterprise solutions for corporate users.

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Keywords: BitGo, investment, funding round, security, Bitcoin, digital currency, crypto-currency, online sales
Categories: Fraud & Financial Crime
Countries: World
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