Chainalysis Buys Israeli Fraud Detection Startup Alterya for $150M

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What to know:

  • Chainalysis said it had acquired fraud detection startup Alterya to combat financial fraud more broadly.
  • Business Insider reported a price tag of $150 million for the deal.

On Monday, it was announced that Chainalysis, a company specializing in blockchain analysis, has purchased the fraud detection start-up Alterya for approximately $150 million, as reported by Business Insider.

According to CEO Jonathan Levin of Chainalysis, the world’s leading company in tracking illegal cryptocurrency transactions for financial institutions and governments, they aim to enhance their anti-scam features by incorporating Alterya into their operations, as reported by CoinDesk.

The two entities approach a related issue – detecting malicious activities within blockchain networks – from distinct perspectives. While Chainalysis accumulates extensive intelligence on crypto wallets to track the flow of funds, Alterya intervenes by analyzing data on scammers and preventing their transactions in progress.

Levin stated that Alterya has amassed an extensive database of details regarding the financial systems used by scammers worldwide,” he explained. By linking to this data, exchanges can detect and halt transactions originating from possible victims, thus preventing fraudulent activities.

Chainalysis currently gathers vast amounts of information about cryptocurrency fraudsters, and there is a notable similarity between their internal blacklist and Alterya’s, according to Levin. However, Alterya boasts an even more extensive list than Chainalysis. By merging the abilities of these two companies, Levin anticipates identifying even more fraudsters in the future.

The ongoing series of acquisitions sees Chainalysis adding more Israeli-based crypto security startups to its roster, following last month’s purchase of Hexagate. All teams will now operate from a unified office in Tel Aviv, as stated by Levin. This strategic move could potentially allow the company to leverage Israel’s rich pool of talent in this particular field even more effectively.

Although Chainalysis primarily shines in the cryptocurrency sector, it is venturing into a broader mission to combat financial fraud. Meanwhile, Alterya’s AI-powered fraud detection models are finding significant potential in traditional markets as per Levin’s statement. These innovative tools could provide crucial data for banks and other financial entities to prevent fraud effectively.

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2025-01-13 22:03