Chainalysis has announced the acquisition of Alterya, an AI-powered fraud detection solution that proactively identifies scammers before they reach their victims. This acquisition follows Chainalysis’ purchase of the Web3 security solution Hexagate last month, further bolstering its strategy to lead in the prevention and investigation of illicit transactions in the blockchain space.
As cryptocurrencies continue to gain mainstream adoption, the need for strong frameworks to detect and prevent fraud is growing. In 2024 alone, illicit addresses received a staggering US$40.9 billion — a number that Chainalysis expects will rise to US$51 billion as it refines its analysis. This makes the acquisition of Alterya even more timely as governments, law enforcement, and Virtual Asset Service Providers (VASPs) seek to implement robust measures to protect consumers.
Alterya already partners with top cryptocurrency exchanges like Binance, Coinbase, and Block, as well as financial institutions, to monitor over US$8 billion in transactions monthly across crypto and fiat rails. Its AI-driven solution has been instrumental in protecting 100 million end-users, detecting US$10 billion in scam-related transactions last year, and working proactively with clients to minimize losses and build trust.
With this acquisition, Chainalysis gains the ability to offer real-time fraud protection for payments and enhanced fraud detection during Know Your Customer (KYC) processes for exchanges, blockchain companies, and wallet providers. Additionally, government agencies can use Alterya’s insights to investigate emerging fraud trends, including pig butchering scams, and generate leads for illicit activity. Chainalysis also plans to build upon Alterya’s fraud detection on fiat payment rails, offering insights to financial services firms on fiat accounts targeted by fraudsters — often a precursor to crypto-related crimes.
Jonathan Levin, Co-founder and CEO of Chainalysis, stated, “Our acquisition of Alterya represents a significant step forward in our work to provide a holistic risk solution that includes prevention, compliance, and remediation. Their mission to protect people from fraud and scams — one of the highest-grossing categories of crypto crime — is key to building trust in blockchains. We’re excited to welcome Alterya to the team and continue working to safeguard billions of people from fraud and ensure safer, faster payments for all.”
Ilan Zimmer, Director of Payment & Operational Risk at Coinbase, also commented, “Alterya has been a reliable partner in helping Coinbase identify wallet addresses tied to known investment scams. This collaboration has enabled us to better protect our customers and safeguard their hard-earned funds from bad actors.”
This acquisition further cements Chainalysis’ position as a leader in fraud prevention and investigation within the cryptocurrency space, reinforcing its commitment to building a safer ecosystem for users worldwide.