Cryptosat raises $3 million to launch satellite into space for bulletproof cryptography

Rick Steves

Cryptosat has successfully completed a seed raise of $3 million as it prepares to launch a Trusted Execution Environment in space,

The private round was led by Cryptosat co-founders Yonatan Winetraub and Yan Michalevsky, who were joined by Protocol Labs (known for backing Filecoin and developing IPFS), Inflection, GoAhead Ventures, DoraHacks, and founders of Phala Network.

Cryptosat co-founders Yonatan Winetraub and Yan Michalevsky are Stanford PhD alumni and the team has a background in aerospace engineering, applied security, and cryptography.

In May 2022, their first satellite, Crypto1, was launched into orbit. In March 2022, the team completed an experiment onboard the International Space Station.

Tamper-proof satellites can serve numerous use-cases including transaction signing, trusted setups for cryptographic schemes, a randomness oracle, time-oracle (VDF) and more.

“Random Beacons must be unpredictable and resistant to any manipulations”

Cryptosat wants to innovate with its tamper-proof root-of-trust through complete device isolation and the $3 million raised will be used to support its goal of establishing physically isolated cryptographic applications housed in an orbiting satellite.

The startup is working on projects with a number of organizations in order to create a trusted execution environment in space, including the development of a Random Beacon for the Velas blockchain that can generate and transmit trusted randomness from space.

Farkhad Shagulyamov, Chief Executive Officer at Velas, said: “Random Beacons must be unpredictable and resistant to any manipulations. We believe that our partnership with Cryptosat will help us develop a top-quality Random Beacon, which has no analogues in the modern crypto industry.”

Cryptosat’s own satellites to remove all third party interference

Yan Michalevsky, Co-founder at Cryptosat, added: “Cryptosat provides unprecedented integrity, confidentiality and authenticity guarantees for the most sensitive cryptographic operations by leveraging an environment that provides ultimate physical security: space.”

Protocol Labs, one of the investors in this private round, has also partnered with Cryptosat to trial time-based cryptographic primitives such as Verifiable Delay Functions (VDFs) hosted in space. These have the potential to unlock new opportunities in the realm of computing and guarantee ultimate trust and transparency, ranging from blockchain to securing internet transactions.

Cryptosat will use its own satellites built from the ground up to guarantee that no third party has interfered with the compute environment prior to its being launched into orbit. This provides a unique guarantee that not even nation-state actors can tamper with the operations that are carried aboard the satellite.

The startup argues that a space-based trusted setup eliminates the possibility of physical hack or network intrusion, making near earth orbit a new battleground in the quest for bulletproof cryptography.

Read this next


Top Crypto Investment: BlockDAG Outpaces Bitcoin Price and Cardano ADA Upgrades, Securing $19.3M in Revolutionary Presale

After plummeting below the crucial $70,000 mark amidst geopolitical tensions, the Bitcoin price is signalling a recovery as it climbs past $63,000. Concurrently, Cardano ADA upgrades, particularly the much-anticipated Chang Hardfork.

Fundamental Analysis, Tech and Fundamental

Global FX Market Summary: Middle East, US economic data, Eurozone data April 22 ,2024

US Dollar strengthens as easing Middle East tensions and strong economic data boost investor confidence, while dovish central banks and weak data weigh on the Euro.

Digital Assets

Thailand moves to block crypto websites to combat online crime

Thai authorities announced that they will block access to unauthorized cryptocurrency platforms. The decision was made after a meeting of the Technology Crime Prevention and Suppression Committee.

Tech and Fundamental, Technical Analysis

GBPUSD Technical Analysis Report 22 April, 2024

GBPUSD currency pair can be expected to fall further toward the next support level 1.2200, previous strong support from November.


TT now enables users to create synthetic multi-leg instruments

“TT Splicer combines the ease and flexibility of TT’s market-leading Autospreader with the power of our best-in-class execution algos to uniquely minimize slippage and optimize trade execution when trading synthetic multi-leg spreads.”


Imandra launches FIX Wizard: AI assistant for FIX connectivity suite

“LLMs hold tremendous promise, but ultimately cannot be trusted in regulated environments. By combining their strengths with scalable, rigorous automated reasoning, we obtain a kind of magic: conversational interfaces with correct reasoning and domain-specific skills.”


Sui Overflow Hackathon Funding Pool Balloons to $1,000,000 as New Sponsors Join

Alibaba Cloud, AngelHack and dWallet are among the latest supporters for the global event.

Institutional FX

Liquidnet launches SuperBlock Matching for equities trading

“The creation of a protected space to trade the most challenging blocks is a direct response to a request from our Membership and is an extension of our existing block trading offering, to facilitate more complex and nuanced trades.”

Retail FX

Midas raises $45 million to expand brokerage beyond Turkey

Midas has raised $45 million in equity funding to expand and roll out three new products: cryptocurrency trading, mutual funds, and savings accounts.