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Investing in CAT Labs: Tools for Fighting Crypto Crime

M13 leads the $5.4M seed round for CAT Labs, a startup building tools to fight crypto and AI-enabled crime.

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By
Karl Alomar
Karl Alomar
By M13 Team
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December 4, 2024
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3 min

By 2025, global cybercrime is expected to be a $10T problem—fueled significantly by criminal networks that leverage emerging technologies like cryptocurrency and AI. 

High-tech problems require high-tech solutions. Fortunately, CAT Labs tools are just that. The company is developing tools to help government agencies and private industry fight the misuse and abuse of emerging technologies, with a focus on countering the nefarious use cases of cryptocurrency, AI, and quantum computing.

We’re taking on the 'Digital Kingpins’… Traditional methods of deterrence are outdated, and we aim to bridge the gap by providing the technology and education needed to fight these threats head-on." —Lili Infante, CAT Labs Founder & CEO

We believe CAT Labs stands out for its team of experts with extensive experience in cryptocurrency-enabled crime. Founder Lili Infante formerly worked as a DEA Special Agent for the US Department of Justice, where she led numerous major crypto investigations, launched the first Counternarcotic Cyber Investigations Task Force, and led the investigation that took down Hydra—at the time the world’s largest and longest-running crypto-powered dark web criminal organization. 

With this unique background, Lili has assembled a team of technical experts who understand how global criminal networks operate and how to dismantle them. The CAT Labs team includes former investigators, analysts, and technologists from agencies like the Department of Justice, Homeland Security, and the Department of Defense, as well as academics and researchers specializing in blockchain analytics, cryptography, and artificial intelligence.

CAT Labs founder & CEO Lili Infante on stage with M13 partner Matt Hoffman at M13's annual investor meeting 2024

We believe CAT Labs meets the growing need for a tech-enabled solution in the cybercrime space. Investigations can take multiple years, many existing solutions are highly manual, and agents are rarely equipped to track crypto crime. As criminals, drug cartels, terrorists, and even hostile nation-states increasingly use cryptocurrency and AI to scale illicit operations and global reach, CAT Labs provides crucial tools to combat these evolving threats.

CAT Labs’ flagship product, Recovery CAT, currently supports multiple federal and state/local government agencies and helps investigators automate and scale investigations involving cryptocurrency, making it easier to find, identify and seize illicit assets. The company is also developing quantum-resistant technology for cryptographic key backup and recovery with support from the US National Science Foundation, helping to address future global threats posed by quantum computing.

We’re proud to lead the company’s $5.4M seed round, investing alongside our peers at Castle Island Ventures, CMT, and Hash3. 

By 2025, global cybercrime is expected to be a $10T problem—fueled significantly by criminal networks that leverage emerging technologies like cryptocurrency and AI. 

High-tech problems require high-tech solutions. Fortunately, CAT Labs tools are just that. The company is developing tools to help government agencies and private industry fight the misuse and abuse of emerging technologies, with a focus on countering the nefarious use cases of cryptocurrency, AI, and quantum computing.

We’re taking on the 'Digital Kingpins’… Traditional methods of deterrence are outdated, and we aim to bridge the gap by providing the technology and education needed to fight these threats head-on." —Lili Infante, CAT Labs Founder & CEO

We believe CAT Labs stands out for its team of experts with extensive experience in cryptocurrency-enabled crime. Founder Lili Infante formerly worked as a DEA Special Agent for the US Department of Justice, where she led numerous major crypto investigations, launched the first Counternarcotic Cyber Investigations Task Force, and led the investigation that took down Hydra—at the time the world’s largest and longest-running crypto-powered dark web criminal organization. 

With this unique background, Lili has assembled a team of technical experts who understand how global criminal networks operate and how to dismantle them. The CAT Labs team includes former investigators, analysts, and technologists from agencies like the Department of Justice, Homeland Security, and the Department of Defense, as well as academics and researchers specializing in blockchain analytics, cryptography, and artificial intelligence.

CAT Labs founder & CEO Lili Infante on stage with M13 partner Matt Hoffman at M13's annual investor meeting 2024

We believe CAT Labs meets the growing need for a tech-enabled solution in the cybercrime space. Investigations can take multiple years, many existing solutions are highly manual, and agents are rarely equipped to track crypto crime. As criminals, drug cartels, terrorists, and even hostile nation-states increasingly use cryptocurrency and AI to scale illicit operations and global reach, CAT Labs provides crucial tools to combat these evolving threats.

CAT Labs’ flagship product, Recovery CAT, currently supports multiple federal and state/local government agencies and helps investigators automate and scale investigations involving cryptocurrency, making it easier to find, identify and seize illicit assets. The company is also developing quantum-resistant technology for cryptographic key backup and recovery with support from the US National Science Foundation, helping to address future global threats posed by quantum computing.

We’re proud to lead the company’s $5.4M seed round, investing alongside our peers at Castle Island Ventures, CMT, and Hash3. 

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The views expressed here are those of the individual M13 personnel quoted and are not the views of M13 Holdings Company, LLC (“M13”) or its affiliates. This content is for general informational purposes only and does not and is not intended to constitute legal, business, investment, tax or other advice. You should consult your own advisers as to those matters and should not act or refrain from acting on the basis of this content. This content is not directed to any investors or potential investors, is not an offer or solicitation and may not be used or relied upon in connection with any offer or solicitation with respect to any current or future M13 investment partnership. Past performance is not indicative of future results. Unless otherwise noted, this content is intended to be current only as of the date indicated. Any projections, estimates, forecasts, targets, prospects, and/or opinions expressed in these materials are subject to change without notice and may differ or be contrary to opinions expressed by others. Any investments or portfolio companies mentioned, referred to, or described are not representative of all investments in funds managed by M13, and there can be no assurance that the investments will be profitable or that other investments made in the future will have similar characteristics or results. A list of investments made by funds managed by M13 is available at m13.co/portfolio.