Crypto analysis firm Chainalysis acquires AI-powered fraud detection startup Alterya for $150M

Blockchain analysis giant Chainalysis Inc. said today that it has acquired the Israeli startup Alterya Inc., which develops an artificial intelligence detection solution to beat financial scammers and fraudsters.

Bạn đang xem: Crypto analysis firm Chainalysis acquires AI-powered fraud detection startup Alterya for $150M

Although the two companies did not disclose the details of the acquisition, sources familiar with the deal told Business Insider the total was about $150 million.

Chainalysis is best known for providing analytical data about cryptocurrency transactions on blockchain networks to governments and banks, allowing them to detect illicit financial activity. The New York-based company tracks more than $1 trillion worth of cryptocurrency transactions every month allowing its customers to investigate, map and monitor the flow of funds.

Xem thêm : Bitcoin crashes 5% to hit $92,600 from record-high amid US Fed hawkish stance

Alterya uses AI technology to help detect financial scams amid patterns in data in real time, allowing more rapid conclusions to investigations. Although not well-known in the industry, the company has already begun work with big names, including major crypto exchanges Binance Holdings Ltd. and Coinbase Global Inc., as well as financial services company Block Inc.

“Our acquisition of Alterya represents a significant step forward in our work to provide a holistic risk solution that includes prevention, compliance and remediation,” said Jonathan Levin, co-founder and chief executive of Chainalysis.

Levin added that with this acquisition it can provide real-time proactive fraud protection for payments and transitions during “Know Your Customer” onboarding processes for exchanges, blockchains and wallets. KYC is a process that financial institutions use to verify the identity of their users to ensure that they know who they are working with and that they are operating legally.

Although this is usually a powerful way to thwart bad actors, Alterya said that with the rise of fraud and scams, a number have emerged that can bypass traditional identity-based solutions. Over the past few years, the addition of generative AI has provided scammers with sophisticated social engineering tools that enable them to make fraud more scalable and affordable than before.

The problem, according to internal research from Alterya itself, is that 85% of scams involve fully verified accounts. No amount of pre-verification to catch inauthentic addresses or identities will keep fraudsters from generating fake accounts if such a large number of accounts are stolen identities.

Xem thêm : Binance Coin and Its Impact on the Expansion of the Cryptocurrency Ecosystem

That means both fraud detection and compliance must now rely more heavily on active intelligence, real-time data and pattern detection. Levin said combining Chainalysis’ already existing blockchain data analysis platform with Alterya’s AI-powered fraud detection capabilities will allow its platform to uncover more fraudulent activity.

Since its launch in 2022, Alterya has already helped cryptocurrency exchanges decrease fraud by 60%, reduce scam-related disputes and improve the efficiency of their manual operations, the company said.

“Alterya has been a reliable partner in helping Coinbase identify wallet addresses tied to known investment scams,” said Ilan Zimmer, director of payment and operational risk at Coinbase. “This collaboration has enabled us to better protect our customers and safeguard their hard-earned funds from bad actors.”

This acquisition is the second major deal Chainalysis has made recently, including the acquisition of the blockchain security platform Hexagate Ltd. in December. The companies did not disclose the financial details of that deal.

Image: Pixabay