Octane Funding:- Crypto Hacks still persist as the billion-dollar problem for the Web3 industry. Due to its transparent and decentralized nature of the blockchain technology, blockchain and crypto platforms remains vulnerable to hacks.
In 2024 alone, the amount of cryptocurrency stolen through hacking surged by 21% compared to the previous year, totaling approximately $2.2 billion. This marks the fourth consecutive year where hacking losses have exceeded $1 billion.
Now, in a bet to combat this, Gemini founders’ VC Firm, Winklevoss Capital, is investing in a San Francisco-based AI Cybersecurity start-up to mitigate the threat.
On Tuesday, the cybersecurity firm, Octane, announced a $6.75 million seed round co-led by Winklevoss Capital, the family office of Gemini founders Tyler and Cameron Winklevoss, and Archetype.
Other backers of the platform include Gemini Frontier Fund, the crypto exchange’s venture arm, Circle, Druid Ventures, Duke Capital Partners and certain strategic angels including former Coinbase CTO Balaji Srinivasan, Sina Habibian, and many others..
Developed by a 22-year old Duke University dropout, Giovanni Vignone, Octane aims to prevent the multi-million dollar hacks before they happen.
Octane is thrilled to announce our $6.75M seed round, led by @archetypevc & @winklevosscap, w/participation from @DruidVentures, @circle, @gemini, @LegionCapital, @DukeU Capital Partners, @balajis, @sinahab, and others.
Read more from Nina @Forbes: https://t.co/H0NovBF9pC pic.twitter.com/uzTfXg4uX0
— Octane Security (@octane_security) April 8, 2025
Can Octane Prevent Crypto Hack Using AI?
Smart contracts as the self-executing contracts with the terms directly written into code, are usually deployed on blockchains like Ethereum, Solana, or BNB Chain. Once deployed, they run exactly as programmed, without the possibility of being changed.
However, they’re immutable, meaning even if there’s a bug or vulnerability. We can’t patch them like traditional software—unless we’ve built in an upgrade mechanism.
To solve this, Octane is leveraging the potential of Artificial Intelligence to identify the protocol-specific bugs alongside typical coding issues.
Its core product lies in Code Fix Engine, which is built to fix vulnerabilities in Solidity smart contracts. Using AI algorithms, it’s Code Fix Engine sound automatically to draft a fix, cutting down manual time significantly.
Kind of vulnerabilities it works on include Rounding Errors, Fund Lock Vulnerabilities, Denial of Service conditions, and especially tricky Oracle Misconfigurations.
The platform utilizes machine learning algorithms to analyze patterns and anomalies within blockchain transactions, aiming to identify potential threats before they materialize.
Notably, Will McEvoy, investor for Gemini Bros at Winklevoss Capital, said that the existing core solution of smart contracts reliance is broken. Calling it “medieval”, he said that since it relies on manual, human-based reviews, it remains susceptible to hack.
Its Clientele Already Includes Circle, TrustWallet
As per the information available on its website, Octane’s technology focuses on real-time monitoring and analysis of blockchain transactions. By continuously learning from transaction data, the AI system can adapt to emerging threats and provide timely alerts to prevent unauthorized activities.
Further, post-funding, its CEO Giovanni Vignone revealed in a blog post that it has already been working on finding vulnerabilities in manual audits for leading web3 firms. This includes viz., Circle, Redstone, TrustWallet.
Notably, this dynamic approach can offer a significant advantage over static security protocols, which may not be equipped to handle evolving cyber threats.
With the funding, Octane aims to use the funds to increase product development velocity, expand its team and bolster its capabilities of mass label vulnerability data. Its ultimate aim is to get their platform into the hands of every developer building in crypto.
Final Thoughts: Hope
The recent incident of Bybit Hack is still fresh in our minds. Since traditional security measures have often fallen short in addressing the sophisticated tactics employed by hackers.
Octane’s AI-driven approach represents a proactive strategy. Its aim of preemptively identifying and neutralize threats before they can inflict damage can be truly beneficial for the industry if implemented as visualised.
Further, the Winklevoss twins’ backing of Octane underscores the critical need for advanced security measures in the cryptocurrency industry. As co-founders of Gemini, a prominent cryptocurrency exchange, they have firsthand experience with the challenges posed by cyber threats.
Their investment reflects a commitment to fostering innovative solutions that enhance the safety and integrity of digital asset transactions.
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