Chainalysis Joins Fo...

Chainalysis Joins Forces with AI-Powered Alterya, Doubles Down on Illicit Actors

By José Oramas January 14, 2025 In AI, Binance, Chainlink, Coinbase

Chainalysis acquired AI-powered fraud detection startup Alterya for US$150M to enhance its blockchain analytics and security tools.
The firm will use Alterya’s real-time fraud detection models to improve KYC processes for exchanges and wallet providers.
Alterya’s technology has already reduced fraud by 60% for major platforms like Coinbase and Binance.

AI is taking everything by storm these days, and important players in the crypto space are not missing out, even with responsibilities as big as security and blockchain analytics.

That said, Chainalysis has entered the realm of AI by acquiring Alterya, an AI-powered fraud detection startup, for a reported US$150M (AU$242M). The acquisition was confirmed through a post from January 13, though other financial details were not officially disclosed.

The integration of Alterya’s technology will significantly enhance Chainalysis’ fraud prevention tools thanks to AI-powered capabilities, allowing the firm to offer real-time fraud detection for payments, improve Know Your Customer (KYC) processes for exchanges and wallet providers, and integrate off-chain data sources like Venmo and Zelle with blockchain analytics.

While not widely known in cryptocurrency, Alterya’s solutions have already demonstrated success, helping leading crypto exchanges reduce fraud by 60% and improve operational efficiency. It has already established contracts with major platforms like Coinbase and Binance.

Speaking with Alterya customer Ilan Zimmer, Director of Payment & Operational Risk, Coinbase said the following:

Alterya has been a reliable partner in helping Coinbase identify wallet addresses tied to known investment scams. This collaboration has enabled us to better protect our customers and safeguard their hard-earned funds from bad actors.

Ilan Zimmer, Coinbase

And Another One

This acquisition marks Chainalysis’ second major move in recent months, following its purchase of Web3 security platform Hexagate in December 2024. Alterya, which has built sophisticated AI-driven fraud detection models, brings an even larger blacklist of crypto scammers than Chainalysis already possesses.

Scams are rampant in the DeFi industry, and impersonations are becoming quite a concern. CNA reported how easy it is for scammers to pose as crypto and financial influencers to defraud investors through high-stakes investment schemes.