Blockchain company Spring Labs receives $23 million in seed round funding, GM and Galaxy Capital

According to a press release issued on June 12, Spring Labs, a US-based blockchain startup, raised $23 million in a round of seed financing.

Bank-note-941246_1280

Image source: Pixabay

Spring Labs is said to use the funds to improve its blockchain-based platform, the Spring protocol, and to develop three new fraud protection products designed to combat fraud in the automotive finance arena.

According to the press release, the new products are Spring Verify, Spring Defense and Spring Protect, respectively, for authentication, fraud monitoring/mitigation and loan stacking prevention.

These products are said to provide information to lenders anonymously for financing activities such as unsecured consumer loans, small business loans, credit card issuance and secured car loans.

According to the report, auto financing fraud has almost increased five-fold from 2011 to 2018, and auto financing fraud is said to be relatively easy as other credit options become safer than auto loans.

The report estimates that the auto industry's annual losses are between $4 billion and $6 billion, mainly due to the use of fake ID cards to establish auto credit. A bit like a cloning company's scam, Spring Labs says scammers often mix some real and fake information to create fake credit accounts.

Investors in this round of seed financing include Galaxy Digital, a cryptocurrency investment bank created by password lover Michael Novogratz, and car giant General Motors.

As Cointelegraph previously reported, GM announced that it will join the Spring Founding Industry Partner (SPIF) program in February. SPIF is said to be a project initiated by Spring Labs to provide security solutions through research and collaboration.

Mike Kanarios, GM's chief strategy officer, commented on GM's decision to join the project as a partner. He said:

“As one of General Motors' exclusive financial divisions and one of the world's largest automotive finance providers, we are constantly innovating and improving our fraud prevention and detection capabilities to better serve and protect our customers and distribution. Business."

We will continue to update Blocking; if you have any questions or suggestions, please contact us!

Share:

Was this article helpful?

93 out of 132 found this helpful

Discover more

Blockchain

Alameda Engineer SBF stole my life savings

As an engineer at Alameda Research, my entire life savings were stolen by my former boss, Sam Bankman-Fried (known to...

Opinion

Unveiling SBF's Defense Draft of up to 250 pages I did what I believed was right.

In the draft, SBF traced his development history, from his childhood in Palo Alto to the penthouse apartment he purch...

Blockchain

The cryptocurrency exchange "closed tide", running to catch up with P2P

The cryptocurrency exchange, once regarded as “stable and not paying”, is more crazy than other fields,...

Blockchain

Blockchain investment: which "platform coin" has more investment value?

In the last lecture, I analyzed the "privacy currency" field in the blockchain industry. In this lecture, I...

Blockchain

Coinbase's effect on the currency is not strong, mainly because the market is at work.

Coinbase is one of the most influential compliance exchanges in the world, providing multiple French currency channel...

Blockchain

The undead black swan: from ICO to IEO

If you want to discuss the biggest hot spot in the currency this year, many people will say that it is IEO. The curre...