In a significant move to bolster its arsenal against the ever-evolving threat of cryptocurrency fraud and scams, leading blockchain analytics firm Chainalysis has announced the acquisition of Alterya, an Israel-based company specializing in AI-powered fraud detection solutions. The strategic partnership aims to provide enhanced real-time protection for millions of users in the rapidly expanding Web3 ecosystem.
Proactive Fraud Prevention Through AI
Alterya’s cutting-edge AI technology enables the identification of potential scammers before they even interact with their victims, adding a crucial layer of proactive defense to Chainalysis’ already robust suite of crypto security tools. By leveraging machine learning algorithms and vast datasets, the platform can detect suspicious patterns and red flags, alerting users and preventing fraudulent transactions from taking place.
Alterya has been a reliable partner in helping Coinbase identify wallet addresses associated with known investment scams. This collaboration has enabled us to better protect our customers and safeguard their hard-earned funds against bad actors.
– Ilan Zimmer, Head of Payments & Operational Risk at Coinbase
Expanding Global Reach and Impact
With Alterya already serving major players in the crypto space such as Binance, Coinbase, and Block, the acquisition will allow Chainalysis to extend its fraud detection capabilities to an even broader audience. The combined forces of the two companies now monitor approximately $8 billion in monthly transactions, safeguarding over 100 million users worldwide.
- In 2024 alone, Alterya detected nearly $10 billion in funds about to be transferred to suspicious destinations
- The platform helped senders avoid falling victim to scams and fraudulent schemes
A Comprehensive Approach to Crypto Security
The integration of Alterya’s automated solutions will enable Chainalysis to provide “real-time proactive fraud protection for payments and enhanced fraud detection during KYC for exchanges, blockchains, and wallet providers.” This holistic approach to risk management encompasses prevention, compliance, and remediation, reinforcing the company’s commitment to fostering trust and security in the blockchain ecosystem.
Chainalysis’ acquisition of Alterya represents a significant step in our work to provide a holistic risk solution that includes prevention, compliance, and remediation. Their mission to protect humans everywhere against fraud and scams — one of the most lucrative crypto-crime categories each year — is integral to our mission of building trust in blockchains.
Confronting Sophisticated Crypto Crime
As cryptocurrency adoption continues to surge, so do the threats posed by increasingly sophisticated criminal organizations. From massive “pig butchering” scam farms operating along the Thailand-Myanmar border to complex money laundering schemes, the fight against crypto fraud has never been more critical.
Key Takeaways
- Chainalysis acquires AI-based fraud detection platform Alterya to enhance crypto security
- The move enables proactive identification of scammers before they strike
- The combined forces now monitor $8 billion in monthly transactions, protecting over 100 million users
- The acquisition is a significant step in providing a holistic risk management solution for the crypto industry
As Chainalysis continues to lead the charge in combating crypto crime, its partnership with Alterya serves as a powerful reminder of the industry’s unwavering commitment to creating a safer, more trustworthy environment for all participants. By harnessing the power of cutting-edge technology and collaborative efforts, the crypto community stands united in its mission to build a more secure and prosperous future for the digital assets ecosystem.
