Blockchain analysis leader Chainalysis has acquired Alterya, a startup specializing in generative AI-powered fraud detection.
Alterya collaborates with major cryptocurrency exchanges and fintech companies, including Binance, Coinbase, and Block, as well as leading financial institutions, to monitor over $8 billion in transactions monthly across both crypto and fiat systems.
While the financial terms of the acquisition were not revealed, reports indicate that the Tel Aviv-based startup was valued at approximately $150 million.
Chainalysis claims that this acquisition will allow it to offer real-time proactive fraud protection for payments and enhance fraud detection during Know Your Customer (KYC) processes for exchanges, blockchains, and wallet providers. Alterya has already demonstrated significant effectiveness by helping leading crypto exchanges reduce fraud rates by 60%, lower scam-related disputes, and improve the efficiency of manual operations.
Additionally, Chainalysis is positioning Alterya’s capabilities for government agencies, highlighting its potential for detecting lead generation in various scams, including the “pig butchering” fraud scheme and other emerging fraud trends.
A statement from Chainalysis notes, “We will continue to build on Alterya’s collection of fraud identifiers on fiat payment rails to provide insights to financial services firms regarding fiat accounts where customers are at risk of losing money to fraud — a situation that often indicates an early warning before funds are transferred into crypto.”