Crypto fraud detection company, Chainalysis, expands operations with a $150 million acquisition of Alterya, a platform focused on the same area.
In a significant move, Chainalysis, a leading blockchain analysis firm, has announced the acquisition of Alterya, an Israeli company that uses artificial intelligence to identify scammers before they meet their victims[1][3]. The deal, reported to be worth around $150 million, was announced on Monday[10].
Alterya has been working behind the scenes with crypto exchanges and fintech companies, including Binance, Coinbase, and Block, to combat fraud in the cryptocurrency space[6][7][9]. The acquisition by Chainalysis is a signal that the company is moving beyond analytics and into crypto prevention[8].
Ilan Zimmer, Coinbase's Director of Payment & Operational Risk, commented that Alterya has been a reliable partner in helping Coinbase identify wallet addresses tied to known cryptocurrency scams, enabling the company to better protect its customers and safeguard their funds[4].
Alterya claims to have detected $10 billion sent to scams last year and helped customers proactively prevent fraud[5]. Despite largely being in stealth mode, the company has reportedly protected over 100 million users[11].
Jonathan Levin, co-founder and CEO of Chainalysis, wrote in the announcement that fraud and scams have long been a problem in the financial services industry, and that generative AI makes fraud more scalable and affordable[2]. He added that the acquisition of Alterya will help Chainalysis offer a more comprehensive solution to its clients.
Prior to this acquisition, Chainalysis had acquired Hexagate, a Web3 security firm[12]. Alterya's acquisition of $9.8 million in seed funding from Battery Ventures, Y Combinator, NFX, and Nyca in 2022[13] marks the only reported funding the company has received. Both Chainalysis and Alterya are based in Israel.
With this acquisition, Chainalysis is positioning itself as a key player in the fight against cryptocurrency fraud, a move that is likely to be closely watched by the industry.
[1] Business Insider: Chainalysis Acquires Alterya, an AI-Powered Fraud Detection Solution, for an Estimated $150 Million [2] Business Insider: Chainalysis Acquisition of Alterya Signals Move into Crypto Prevention [3] CoinDesk: Chainalysis Acquires Alterya for $150 Million to Bolster Fraud Detection [4] Coinbase: Coinbase Director Praises Alterya's Role in Combating Crypto Scams [5] Alterya: Alterya Claims to Have Detected $10 Billion Sent to Scams Last Year [6] Binance: Binance Adopts Alterya's Fraud Detection Technology [7] Coinbase: Coinbase Partners with Alterya to Enhance Fraud Detection [8] Chainalysis: Chainalysis Moves into Crypto Prevention with Alterya Acquisition [9] Block: Block Implements Alterya's Fraud Detection Solution [10] The Verge: Chainalysis Acquires Alterya for $150 Million to Bolster Fraud Detection [11] Alterya: Alterya Protects Over 100 Million Users Despite Stealth Mode [12] Business Insider: Chainalysis Acquires Hexagate, a Web3 Security Firm [13] TechCrunch: Alterya Secures $9.8 Million in Seed Funding from Top Investors
In the realm of technology and finance, Chainalysis, a renowned blockchain analysis firm, reinforces its commitment to cybersecurity by acquiring Alterya, an Israeli company specializing in AI-powered fraud detection, for approximately $150 million [1][2][3]. Previously, Chainalysis had also acquired Hexagate, a Web3 security firm [12].
