Blockchain analytics giant Chainalysis has announced the acquisition of Web3 security company Hexagate as a strategic move to combat the increasing frequency of cryptocurrency hacking and abuse. This integration marks Chainalysis' move from investigative activities to proactive threat prevention across blockchain networks.
“Together, Chainalysis and Hexagate will provide a comprehensive risk solution that includes prevention, compliance, and remediation,” Chainalysis CEO Jonathan Levin said in an official statement.
Source: Chainalysis
Although financial details of the transaction were not disclosed, the acquisition underscores Chainalysis' commitment to fostering trust within the cryptocurrency ecosystem.
Hexagate's advanced machine learning tools will be a core component of the Chainaracy platform. These tools specialize in detecting and mitigating on-chain risks such as hacking, cyber-attacks, and governance vulnerabilities. To date, Hexagate has protected over $1 billion in customer funds through real-time threat detection and automated response.
The company's customers include well-known cryptocurrency companies such as Coinbase, Consensys, and Uniswap. According to the announcement, over the past two years, Hexagate has successfully identified and stopped over 98% of known hacks before they occur.
Extensive response to increasing cryptocurrency crime
The timing of this acquisition coincides with alarming trends in crypto crime. Chainalysis' August report reveals stolen funds have jumped 84% year-on-year, with losses increasing from $857 million to $1.58 billion in the first seven months of 2024 I made it.
Ransomware payments are also slowly increasing, reaching $459.8 million, making 2024 likely to be the most expensive year for ransomware attacks. The challenges for the cryptocurrency ecosystem do not end there. Investment fraud in the US will reach $4.57 billion in 2023, with 87% of losses coming from crypto-related fraud.
Despite these challenges, Levin remains optimistic. “With the right tools, Web3 can become the most secure financial system in the world,” he said, emphasizing Chainalysis' mission to strengthen security and restore investor confidence.
With the proliferation of cryptocurrency theft and fraud, Hexagate's integration of cutting-edge security technology will allow Chainaracy to play a pivotal role in securing the future of blockchain and decentralized finance.
