Chainalysis Acquires Alterya to Bolster Scam-Stopping Capabilities
Blockchain Analytics Company Acquires Fraud Detection Startup
Chainalysis, a leading blockchain analytics company, has acquired fraud detection startup Alterya for $150 million. The acquisition aims to bolster Chainalysis’ scam-stopping capabilities and enhance its ability to trace illicit crypto flows on behalf of financial institutions and governments.
Combining Forces to Combat Scammers
Chainalysis and Alterya share a similar goal of combating scammers on the blockchain. Chainalysis collects vast amounts of data on crypto wallets to trace where money is moving, while Alterya uses data on scammers to flag transactions initiated by potential victims and stop the crime before it happens.
“Alterya has collected the most comprehensive set of information about all of the scammers’ financial infrastructure that’s out there,” said Jonathan Levin, CEO of Chainalysis. Exchanges that plug into Alterya’s dataset can flag transactions initiated by potential victims, stopping the crime before it happens.
Enhancing Data Collection and Analysis
The acquisition combines Chainalysis’ in-house blacklist with Alterya’s comprehensive list of scammers, allowing for more effective data collection and analysis. This will enable Chainalysis to identify and track more scammers, ultimately reducing the risk of financial losses for individuals and institutions.
Expanding Capabilities Beyond Crypto
Chainalysis is not only focused on the crypto space but is also expanding its capabilities to combat financial fraud more broadly. Alterya’s AI-driven fraud models have substantial opportunities in the traditional market, and the requisite data to help banks and other financial institutions stop fraud.
New Office in Tel Aviv
All teams will work out of a new, combined office in Tel Aviv, Israel. This move positions Chainalysis well to tap into Israel’s “very deep talent market for this kind of work,” according to Levin.
Conclusion
The acquisition of Alterya by Chainalysis is a significant step in the fight against scammers on the blockchain. By combining forces, the two companies can enhance their data collection and analysis capabilities, ultimately reducing the risk of financial losses for individuals and institutions. As Chainalysis continues to expand its capabilities beyond the crypto space, it is poised to play a leading role in combating financial fraud more broadly.
FAQs
Q: What is the purpose of the acquisition?
A: The acquisition aims to bolster Chainalysis’ scam-stopping capabilities and enhance its ability to trace illicit crypto flows on behalf of financial institutions and governments.
Q: How will the acquisition benefit Chainalysis?
A: The acquisition combines Chainalysis’ in-house blacklist with Alterya’s comprehensive list of scammers, allowing for more effective data collection and analysis. This will enable Chainalysis to identify and track more scammers, ultimately reducing the risk of financial losses for individuals and institutions.
Q: What opportunities does the acquisition present for Alterya?
A: The acquisition provides Alterya with access to Chainalysis’ extensive network and resources, allowing it to expand its capabilities and reach a wider audience.
Q: Will the acquisition impact Chainalysis’ operations?
A: All teams will work out of a new, combined office in Tel Aviv, Israel. This move positions Chainalysis well to tap into Israel’s “very deep talent market for this kind of work,” according to Levin.
Q: What does the acquisition mean for the future of blockchain analytics?
A: The acquisition demonstrates the growing importance of blockchain analytics in the fight against financial fraud. As Chainalysis continues to expand its capabilities beyond the crypto space, it is poised to play a leading role in combating financial fraud more broadly.
