Chainalysis acquires AI startup Alterya for $150M to strengthen crypto security measures

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Chainalysis acquired Alterya for $150 million. The AI ​​startup has secured deals with major players in the crypto and fintech space, including Binance, Coinbase and Block, as well as traditional financial institutions.

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Chainalysis, a major player in crypto analysis and forensics, has acquired Alterya, an Israeli startup focused on fraud detection using AI agents, the company said Monday. The total purchase price was about $150 million, sources familiar with the acquisition told Business Insider.

Founded in 2022 and backed by $9.8 million in seed funding from Battery Ventures, Y Combinator, NFX and Nika, Alterya uses AI agents to detect and prevent fraud targeting financial institutions, fintech and crypto service providers.

This investment allows Chinalysis to go beyond reactive checks and proactively prevent fraud. Alteria's advanced AI-driven tools can boost the company's ability to detect sophisticated fraud, especially those that embrace generative AI.

“At Alterya, Chainalysis is doubling down on its strategy to invest in preventing illegal transactions following its acquisition of Web3 security solution Hexagate last month,” the company said.

Chainalysis also aims to better address fraud originating from traditional financial systems and track how those funds flow into crypto. By tracking over $8 billion in monthly transactions across crypto and fiat rails, Alterya Chainalysis is well positioned to help provide a comprehensive suite of services that include financial crime prevention, compliance and remediation.

The company has protected 100 million users from fraud, although it mostly works in stealth mode, Chainalysis. Binance, Coinbase and Square are among its clients.

“Alteria has achieved $10B in fraud remittances by 2024 and has worked with customers to prevent fraud, reduce losses and build customer trust,” Chainalysis added. “Alterya has already helped top crypto exchanges reduce fraud by 60%, reduce fraud-related disputes and improve the efficiency of manual transactions.”

Ilan Zimmer, director of payments and operational risk at Coinbase, highlighted the effectiveness of Alterya's technology in identifying wallet addresses linked to known investment scams:

“Alterya is a reliable partner in helping Coinbase identify wallet addresses linked to known investment scams. This collaboration allows us to better protect our customers and protect their hard-earned funds from bad actors.”

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