Bitcoin Transaction Tracking Startup SABR Claims Its Technology Could Have Caught DPR Easily

Bitcoin Magazine
Bitcoin Transaction Tracking Startup SABR Claims Its Technology Could Have Caught DPR Easily
sabr

The increase in bitcoin ransom demands and hacking incidents have alerted international law enforcement agencies and governments about the involvement of bitcoin in illegal activities. This week, bitcoin startup SABR has raised $1 million USD in an early seed funding round for its blockchain monitoring and identification system.

As a consultation-like service, SABR will work with law enforcement agencies to track down bitcoin transactions, how they’re being spent and who owns them. The company stated that its patented technology, data and partnerships enable it to fully track down information about a single or a series of transactions.

“SABR integrates data from multiple blockchains, as well as other public and proprietary sources,” the SABR team explained. “SABR’s unique position and partnerships within the network underlying the decentralized digital currency ecosystem provides access and insight otherwise inaccessible.”

The team added that following bitcoin transactions is not an efficient method to track down payments, as bitcoin creates a “blind spot.” SABR claimed that its technology could have found the Dread Pirate Roberts, the administrator of the Silk Road, in a few days, instead of the years of covert investigations by the U.S. Govenment.

According to Venturebeat, SABR has already begun to attract the attention of the “U.S. Department of Justice, the White House, and other federal agencies.”

All of SABR’s clients, individuals or organizations will be assigned SABR engineers and experienced data analysts and develop a close working relationship to ensure that its clients are efficiently using the SABR software, according to the company.

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Coinsetter Exchange Applies for BitLicense, Plans to Stay in New York
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Just as other exchanges such as Kraken and BitFinex are pulling up roots and leaving New York because of the controversial BitLicense program, New York-based digital currencies exchange Coinsetter has decided to stay and has submitted a BitLicense application to the New York Department of Financial Services.

CEO Jaron Lukasiewicz said that despite reservations, he has decided to bite the bullet.

“We will take a more difficult path in order to make sure New York residents continue to have a high-quality bitcoin exchange available to them,” Lukasiewicz said. “We have had a couple of customers close their accounts in protest to the BitLicense over the past week, but our company has not historically appealed to the anti-regulation crowd in general. As a long time bitcoiner, I certainly understand this sentiment, but as an exchange owner, my regulatory requirements are clear and not something I will avoid.”

JaronLukasiewicz

As was reported by Bitcoin Magazine on Tuesday, digital currencies exchange Kraken became the third company to leave New York over the last two weeks, following the lead of BitFinex, boutique bitcoin exchange Poloniex, and bitcoin peer-to-peer marketplaces Paxful, BitQuick, and Local Bitcoins.

Earlier this year, Erik Voorhees, CEO of ShapeShift.io, stopped serving New York clients, calling the BitLicense requirements “Orwellian” and “just like North Korea.” Bitcoin business Xapo moved its corporate headquarters to Zurich.

Unlike the Winklevoss twins’ Gemini exchange, which has applied for a trust charter and is expected to launch soon, Coinsetter is legally allowed to continue operating during the application review process, and New York residents are able to open an account online.

In May, itBit became the first exchange to win a BitLicense when they were granted a trust company charter from the New York Department of Financial Services.

For smaller digital currencies businesses such as Poloniex, the non-refundable $5,000 application fee as well as a long list of necessary qualifications are formidable and make it even harder for smaller startups to compete against the larger exchanges.

Both MIT’s Digital Currency Initiative and the Washington D.C.-based Coin Center have commented that the onerous regulatory burden placed on New York companies will discourage new innovative startups and create an investment “chill” for digital currencies businesses.

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