- Chainalysis acquires Alterya to enhance fraud detection with AI in crypto and finance.
- Alterya’s AI technology helps detect fraud across digital platforms, beyond blockchain.
- The acquisition extends Chainalysis’ fraud prevention to traditional financial systems.
Blockchain analytics giant Chainalysis has acquired Israeli startup Alterya for $150 million. This strategic move aims to enhance Chainalysis’s fraud detection capabilities using artificial intelligence (AI).
Alterya has developed AI technology to detect and prevent fraud in the crypto sector. The company has gained recognition for its success in combating malicious activity targeting financial institutions and crypto service providers.
This technology effectively detects malicious digital identities and scam websites across various digital platforms, including social media, websites, and messaging services. As such, Alterya is a valuable asset to Chainalysis, which is working to expand its fraud prevention efforts beyond blockchain.
Expanding Fraud Prevention Tools
Chainalysis plans to integrate Alterya’s AI technology with its existing tools to create a more robust detection system. The company’s expertise in blockchain research has already helped financial institutions like Barclays and BNY Mellon uncover criminal activity and ensure regulatory compliance.
By acquiring Alterya, Chainalysis will combine its on-chain data with Alterya’s off-chain intelligence from sources like banks, Zelle payments, and Venmo. This combination will allow the company to identify fraud at earlier stages, stopping fraudsters before they can harm victims of blockchain-based scams.
Chainalysis CEO Jonathan Levin stressed the importance of proactive fraud prevention. He wants to address scams before they reach blockchain networks, which will benefit both individuals and financial institutions.
Related: Chainalysis Exposes the Underbelly of Crypto Money Laundering
Levin also noted that integrating Alterya’s technology will help the company expand its fraud prevention capabilities to traditional financial systems. Alterya previously raised $9.8 million in seed funding from investors like Battery Ventures, Y Combinator, NFX, and Nyca to develop its advanced technology.
Now, as part of Chainalysis, Alterya’s AI-powered fraud prevention system will play a key role in Chainalysis’s ongoing efforts to combat scams across both the crypto and traditional financial sectors.
Related: Ex-FBI Agent Uses Chainalysis to Track Crypto Criminals
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