Blockchain analytics company Chainalysis made a significant announcement on Monday, revealing its acquisition of fraud detection startup Alterya. The deal, reportedly valued at $150 million according to Business Insider, signifies a strategic move by Chainalysis to enhance its capabilities in combating cryptocurrency scams.
CEO Jonathan Levin explained that Chainalysis, known for its expertise in tracing illicit crypto flows for financial institutions and governments, aims to strengthen its scam-stopping abilities with Alterya. The two companies tackle the issue of bad actors on the blockchain from different angles – Chainalysis tracks crypto wallets to trace money movements, while Alterya uses data on scammers to prevent fraudulent transactions in real-time.
Levin highlighted Alterya’s extensive database of information on scammers’ financial infrastructure, allowing exchanges to identify and block transactions initiated by potential victims. By combining their resources, Chainalysis expects to further enhance its ability to identify and prevent fraudulent activities in the crypto space.
This acquisition is part of Chainalysis’ strategic expansion in acquiring Israeli-based crypto security startups, following the recent purchase of Hexagate. Both teams will now operate from a new joint office in Tel Aviv, leveraging Israel’s rich talent pool in cybersecurity.
While Chainalysis is renowned for its work in the crypto industry, the company is now setting its sights on combating financial fraud more broadly. Levin emphasized that Alterya’s AI-driven fraud models have significant potential in traditional markets, offering valuable data to assist banks and financial institutions in preventing fraud.
The integration of Alterya’s capabilities into Chainalysis’ existing framework reflects the company’s commitment to staying ahead of evolving threats in the financial sector. With this latest acquisition, Chainalysis is poised to further solidify its position as a leading provider of blockchain analytics and anti-fraud solutions.