American blockchain analysis firm Chainalysis has acquired AI-powered fraud detection solution specialist Alterya.

With a current client base of around 100 million users, Alterya users AI-powered threat intelligence to identify scammers before they commit fraudulent activities. It monitors more than $8 billion in transactions per month across crypto and fiat rails, detecting $10 billion sent to scammers in 2024.

The acquisition will see its technology being integrated into Chinalysis’ real-time proactive fraud protection for payments and fraud detection processes during KYC for exchanges, blockchains, and wallet providers.

Alterya has been working with several cryptocurrency exchanges and FinTechs including Binance, Coinbase, and Block, and financial services.

The deal will enable Chainalysis to combine Alterya’s technology with its blockchain data platform with the aim of strengthening its solutions across blockchains and digital payment rails, to maximise client protection from fraudulent activity.

“With the partnership, government agencies may also leverage Alterya’s insights for lead generation into pig butchering, scams, and other emerging authorised fraud trends,” Chainalysis added in a statement.

Chinalysis said the move reinforces its commitment to provide a holistic risk solutions through new investments after completing the acquisition of cybersecurity solution Hexagate last month.

“Alterya’s mission to protect humans everywhere from fraud and scams, one of the highest grossing categories of crypto crime annually is integral to our mission to build trust in blockchains,” Chinalysis added.

The blockchain specialist noted the growing role of generative AI in scaling fraudulent activities, makes it more difficult for financial institutions and crypto businesses to detect scammer activity.

Data from Alterya suggests that 85 per cent of scams involve fully verified accounts that bypass traditional identity solutions, with both fraud detection and compliance relying on granular, real-time data.

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