Blockchain analysis firm Chainalysis has acquired Alterya, an AI-based fraud detection platform focused on identifying scams before they impact victims.
Alterya, which launched in stealth mode, has collaborated with cryptocurrency exchanges like Binance, Coinbase, and Block, along with financial institutions, to monitor over US$8 billion in monthly transactions across crypto and fiat systems.
The platform aims to protect users from fraud, which remains a persistent issue in the financial sector.
In 2024, Alterya identified US$10 billion in scam-related transactions and worked with clients to reduce losses and address fraud effectively.
This acquisition follows Chainalysis’s recent purchase of Hexagate, a Web 3.0 security platform, as part of its broader strategy to address illicit financial activities.
Fraud detection faces new challenges with advanced technologies like generative AI enabling more complex scams.
Alterya’s research shows that most scams (85%) involve verified accounts, making traditional detection methods less effective.
By integrating Alterya’s tools with the Chainalysis blockchain data platform, the partnership seeks to improve fraud detection across digital payment systems.
Alterya’s technology has reportedly helped reduce fraud by 60% for some crypto exchanges while improving operational efficiency.
The acquisition also allows Chainalysis to support government agencies and financial institutions in detecting fraud trends and identifying early signs of suspicious activity on fiat payment systems.
Chainalysis plans to expand its team in Tel Aviv to further develop fraud prevention tools and build on Alterya’s roadmap to improve security across global payment systems.
Featured image credit: Edited from Freepik