(AI image by Dall-E)

Chainalysis Acquires Alterya to Advance Blockchain Fraud Prevention

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The Judean Staff
Start-Up-Nation

Blockchain analytics leader Chainalysis has announced the acquisition of Israeli cybersecurity powerhouse Alterya, marking its second acquisition in Israel in just over a month. This move follows the recent purchase of Hexagate, highlighting Chainalysisโ€™ strategic focus on tapping into Israelโ€™s vibrant tech ecosystem, known globally for its innovation and expertise.

Chainalysis: A Global Titan in Blockchain Analytics

Chainalysis, a pioneer in blockchain analytics and transaction monitoring, employs over 700 professionals across the globe. Its solutions are trusted by a diverse clientele that includes leading financial institutions, regulatory bodies, law enforcement agencies, and cryptocurrency exchanges. With Alterya now part of its arsenal, Chainalysis is poised to expand its capabilities further, offering end-to-end solutions that span compliance, fraud detection, and risk management.

Alterya: A Rising Star in Real-Time Fraud Prevention

Founded in 2022 by Elad Fouks and Shahaf Gonen, Alterya has quickly emerged as a leader in real-time fraud prevention, specializing in cryptocurrency and instant payment methods.

  • Fouks, a veteran of Israel's elite technological and operational intelligence units, brings unparalleled expertise in cybersecurity and strategic operations.
  • Gonen, a graduate of the prestigious Talpiot program and former member of the renowned Unit 8200, boasts an impressive track record, including a stint at Google.

From its inception, Alterya secured $9.8 million in seed funding, led by Battery Ventures with support from Nyca, NFX, and Y Combinator, further underscoring its potential. Its team of 28 experts will remain with the company post-acquisition, forming a local development hub while maintaining its distinct product line.

A Breakthrough in Fraud Detection Amid Emerging Threats

Alterya has revolutionized fraud prevention by addressing the growing threat of social engineering scams, which have surged with the proliferation of generative AI (GenAI). Attackers increasingly use GenAI to craft synthetic identities and sophisticated fraudulent schemes. Alteryaโ€™s groundbreaking platform combines AI and advanced cybersecurity tools to detect and mitigate these threats in real time.

In under two years since its launch, Alterya has gained the trust of industry giants such as Coinbase, Square, and Binance, along with major U.S. banks. In 2024 alone, it identified over $10 billion worth of cryptocurrency fraud and safeguarded assets exceeding $100 million for its clients.

Synergistic Integration to Redefine Blockchain Security

With the acquisition of Alterya, Chainalysis aims to integrate its real-time fraud prevention technologies into its existing suite of tools. This synergy will enable Chainalysis to provide comprehensive fraud detection and prevention services, including enhanced Know Your Customer (KYC) measures for blockchain platforms and wallets.

โ€œAcquiring Alterya is a landmark step in our mission to deliver a holistic risk solution for the blockchain ecosystem,โ€ said Jonathan Levin, co-founder and CEO of Chainalysis. โ€œThis partnership will enable us to address fraud proactively while reinforcing regulatory compliance and fostering trust in blockchain as the financial infrastructure of the future.โ€ 

An Industry-Transforming Collaboration

Echoing this enthusiasm, Alteryaโ€™s CEO, Elad Fouks, highlighted the transformative potential of the merger. โ€œWe are excited to join forces with Chainalysis. The combination of our technologies will drive rapid growth, unlock value for our customers, and extend our reach into new markets.โ€

Fouks also emphasized the urgency of combating social engineering fraud, stating, โ€œWith GenAI enabling attackers to bypass traditional verification processes on an unprecedented scale, Alteryaโ€™s AI-driven fraud detection represents a paradigm shift. Our solutions ensure that financial services can adopt faster payment infrastructures without compromising security.โ€

A Vision for the Future

This acquisition signifies Chainalysisโ€™ commitment to staying at the forefront of blockchain security. By leveraging Alteryaโ€™s cutting-edge technology and talent, the company is set to redefine how the world approaches fraud prevention, regulatory compliance, and financial trust in the digital age.

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