In a significant move to bolster its fraud-fighting capabilities, leading blockchain analytics firm Chainalysis announced the acquisition of Israeli fraud detection startup Alterya on Monday. The deal, reportedly valued at $150 million, marks a major step for Chainalysis in its mission to combat financial crime across both traditional and digital asset ecosystems.
Uniting Forces Against Fraud
While Chainalysis and Alterya both strive to thwart bad actors on the blockchain, they approach the problem from different angles. Chainalysis focuses on amassing intelligence on crypto wallets to trace illicit funds, while Alterya leverages scammer data to intercept fraudulent transactions in real-time.
Alterya has collected the most comprehensive set of information about all of the scammers’ financial infrastructure that’s out there.
– Jonathan Levin, Chainalysis CEO
Expanding the Blacklist
By integrating Alterya’s extensive scammer database with its own blacklist, Chainalysis expects to identify an even greater number of fraudsters. Exchanges utilizing this enhanced dataset can flag potential victim transactions, effectively stopping crimes before they occur.
- Combined intelligence from Chainalysis and Alterya’s scammer databases
- Real-time fraud prevention by flagging suspect transactions
- Protecting potential victims before they fall prey to scams
Tapping Israeli Talent
The acquisition of Tel Aviv-based Alterya follows Chainalysis’ recent purchase of Israeli security startup Hexagate, further cementing its presence in the country’s thriving tech scene. CEO Jonathan Levin highlighted Israel’s “very deep talent market for this kind of work” as a key factor in the company’s strategic moves.
All teams will work out of a new, combined office in Tel Aviv.
– Jonathan Levin, Chainalysis CEO
Beyond Crypto: Tackling Traditional Finance Fraud
While best known for its crypto-focused endeavors, Chainalysis is now setting its sights on combating fraud in the broader financial realm. Alterya’s AI-driven models hold immense potential for banks and other traditional institutions seeking to curb financial crime.
Alterya’s AI driven fraud models have “substantial opportunities in the traditional market.
– Jonathan Levin, Chainalysis CEO
The Road Ahead
As Chainalysis continues to fortify its position as a leader in blockchain security and anti-fraud solutions, the acquisition of Alterya marks a significant milestone. By harnessing cutting-edge Israeli talent and technology, the company is poised to make even greater strides in safeguarding the integrity of both crypto and traditional finance.
With the combined might of Chainalysis and Alterya, fraudsters and scammers will face an increasingly formidable foe in their nefarious pursuits. As the battle against financial crime rages on, this union offers renewed hope for a safer, more secure financial landscape for all.
