$800M Riskified considers sale of the business, fincrime watchdog AUSTRAC announces new AI policy, SEC drops case against Kraken

From Paul O'Donoghue at AMLi

RISKIFIED, A PROVIDER of software that helps prevent e-commerce fraud, is exploring options including a potential sale after receiving takeover interest, according to people familiar with the matter.

New York-based Riskified, which traces its roots to Israel, is working with investment bank Qatalyst Partners to review approaches from interested parties, the sources said, requesting anonymity as the discussions are confidential.

Potential acquirers include digital payments processing firms, online shopping platforms, cybersecurity software makers, and private equity firms, the sources said. The deliberations are at an early stage, the sources said, cautioning that a deal is not guaranteed.

Riskified, which listed its shares through an initial public offering nearly four years ago, has a market value of about $800 million and has become a takeover target after its stock lost more than 80% of its value from a September 2021 peak.

WITH AN EXPLOSION in criminals using AI (artificial intelligence) to run scams, regulators are trying to use the same technology to fight back.

That’s why AUSTRAC, Australia’s FIU (Financial Intelligence Unit), has just published an AI Transparency Statement, setting out its approach to the brave new fincrime world.

A key point highlighted is that AUSTRAC gave more detail on how exactly it wants to use AI - and for now, its focus is on using the tech to improve productivity and collaboration.

The agency is also “considering the future adoption of AI for the purposes of workplace productivity and analytics for insights.” However, these efforts are still in the pilot stage.

Another point of interest - AUSTRAC said that data privacy will remain a priority as it evaluates AI tools. “Protecting the privacy and security of sensitive and classified information and the data of individuals is of paramount importance to us,” the agency stated.

“Staff who use publicly available generative AI tools for research purposes will not include or reveal any classified, personal, or otherwise sensitive information. All activities will align with legislation and policies relating to information and data.”

AUSTRAC joins a long list of international regulators, such as the FCA in the UK, which are banking on AI being as effective for enforcement as it is for crime.

PRODUCT LAUNCH

SCREENING: Lynx Tech, an AI-driven software company, has launched a new AML screening solution to help financial institutions detect high-risk individuals and entities.

Lynx’s solution uses Natural Language Processing (NLP) and machine learning. These technologies improve name similarity scoring and reduce false positives.

Lynx Tech said many legacy compliance systems are slow and generate too many false positives, creating inefficiencies.

The company’s solution aims to address these challenges. According to Lynx Tech, it can screen hundreds of transactions per second. It also has an average response time of less than one second and a false positive rate below 1%.

THE WORLD OF financial crime compliance and sanctions enforcement is undergoing a profound transformation.

The once-unquestioned US leadership in anti-money laundering (AML), corruption, and sanctions enforcement is shifting—rapidly and unpredictably.

For compliance officers, financial crime teams, and regulatory leaders, the question is no longer whether change is coming—it is how to navigate it. The European Anti-Financial Crime Summit 2025 (EAFCS2025), taking place in Dublin on May 7, is the definitive forum to analyze, adapt, and position for what’s next.

At EAFCS2025, three of Europe’s most influential voices in financial crime enforcement and regulation will lead discussions alongside over 40 global AFC and fraud leaders: Secure Your Place Today!

CRYPTO

KRAKEN: The U.S. Securities and Exchange Commission (SEC) has agreed to dismiss its lawsuit against cryptocurrency exchange Kraken, the company announced.

Kraken stated that the lawsuit ended without any admission of wrongdoing, penalties, or changes to its business operations.

The SEC sued Kraken in November 2023, accusing it of operating as an unregistered securities exchange, broker, dealer, and clearing agency.

CRYPTO ATMS: A UK court has sentenced Olumide Osunkoya to four years in prison for operating an unregistered crypto ATM network.

The Financial Conduct Authority (FCA) charged Osunkoya with running multiple illegal crypto ATMs, falsifying documents, and possessing criminal property between December 2021 and September 2023. He pleaded guilty in September 2024.

BYBIT: The FBI has accused hackers from North Korea of stealing $1.5 billion in cryptocurrency from Bybit, a Dubai-based exchange.

The attack, carried out by the Lazarus Group (also known as TraderTraitor), is now the largest crypto theft on record.

The stolen sum exceeds North Korea’s 2023 defense budget of $1.47 billion, according to intelligence firm Janes. In response, the FBI urged cryptocurrency firms to block the stolen funds, preventing their conversion into other digital assets or fiat currencies.

COMPLIANCE

SARDINE: Finally, we have an in-depth interview with Sardine co-founder Soups Ranjan.

As part of our 'In Focus' series, where AML Intelligence delves into the journeys and insights of fincrime industry leaders, we put the spotlight on Mr Ranjan’s professional life after Sardine’s $70 million fundraise.

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Have a great Thursday ??

Stephen and the team at AMlintelligence.