Crypto tracking and analysis company Chainalysis has bought AI-based fraud prevention company Alterya from Tel Aviv to support its fight against crypto frauds. The acquisition, which was realized on 13th January, focuses on the Chainalysis of fighting fraud in an industry with annual losses estimated at billions of dollars.
Alterya’s AI tool predicts scammers before approaching victims, attracting significant cryptocurrency exchange players such as Binance and Coinbase. At the moment, Alterya aids in tracking more than 8 billion in transactions and, in turn, safeguards over 100 million end customers.
The company that just closed a seed round of $9.8 million from investors like Y Combinator, Battery Ventures, NFX, and Nyca has led the fight against fraud. Its sale to Chainalysis, a company specializing in blockchain analytics, would help it better tackle growing security issues.
Chainalysis Enhances Crypto Security with Strategic Acquisitions
The Chainalysis deal follows its reported $150 million acquisition of wallet security company Hexagate and its partnership with financial advisory firm AlixPartners. These actions have highlighted another step Chainalysis took to enhance the use of cryptocurrencies, compliance, security, and fraud detection.
According to Chainalysis in a statement, Alterya’s solution has become a vital tool for addressing fraud and scam cases. The firm stated that the company’s anti-fraud solutions are perfect wake-up calls for dealing with continuously advanced threats within the digital currency environment.
The acquisition was made at a time when people lost lots of money through virtual currency scams and fraudsters. In a recent industry report by the year 2024, the industry has been defrauded more than $3 billion by hackers and scammers. A few specialists fear that attacking AI contexts will soon deteriorate with and involve generative AI, as some attackers use.
The FBI in the United States recently warned that scammers actors are using AI to generate convincing fake content for the general public, therefore increasing the sophistication of various frauds. Yet another benefit of using Alterya is its enhanced capabilities for identifying such highly evolved fraud.
Enhancing Alterya’s state-of-the-art AI will further assert Chainalysis as a provider of proactive cryptographic security and a detection and preventer of fraud. To that end, the firm aims to blend innovative blockchain analysis with state-of-the-art artificial intelligence, creating stronger instruments for identifying malicious activities and protecting users within the ongoing dynamic environment of modern digital assets.
The acquisition also highlights AI’s cardinal role in crypto security and establishes Chainalysis as one of the dogsleds in the campaign against various forms of financial offenses in blockchain industries.
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