Chainalysis Scoops Up Blockchain Security Firm Hexagate Amid Surge in Crypto Hacks

Blockchain analytics agency Chainalysis introduced on Wednesday its acquisition of Hexagate, a Web3 safety supplier, in response to the rising menace of crypto hacks and exploits. 

“Collectively, Chainalysis and Hexagate present a holistic threat resolution that features prevention, compliance, and remediation,” Chainalysis CEO Johathan Levin wrote within the announcement.

The sum it paid for Hexagate was not instantly clear. Decrypt has reached out for clarification.

The acquisition helps Chainalysis’ efforts to bolster belief throughout numerous blockchains by increasing past investigations into prevention.

Chainalysis is ready to combine Hexagate’s machine learning-powered instruments, which detect and mitigate on-chain dangers resembling hacks, cyber exploits, and governance vulnerabilities, the businesses stated. 

Hexagon has reportedly already safeguarded over $1 billion in buyer funds via real-time menace detection and automatic responses.

Excessive-profile purchasers like Coinbase, Consensys, and Uniswap, amongst others, have relied on Hexagate to stop assaults, with greater than 98% of recognized hacks detected earlier than they occurred previously two years, per to the announcement.

Chainalysis has scooped up Hexagate at a time when crypto thefts proceed to rise at an alarming charge. 

In August, the platform’s crypto crime report revealed an 84% spike in stolen funds, hovering from $857 million to $1.58 billion within the first seven months of 2024.

Ransomware funds additionally rose barely, from $449.1 million to $459.8 million, making 2024 on set to be the highest-grossing yr but for such funds, as per the report.

Including to the crypto ecosystem’s challenges, funding fraud within the U.S. reached an all-time excessive in 2023, with losses skyrocketing to $4.57 billion, based on the FBI. 

Crypto-related scams accounted for 87% of these losses, totaling $3.96 billion. This marks a pointy rise from $3.3 billion in 2022 and an 18-fold improve from 2018’s $253 million.

CEO Jonathan Levin famous how such thefts typically have devastating penalties, forcing initiatives to close down and eroding investor confidence.

Nonetheless, he expressed hope, calling Web3 “the world’s most secure monetary system” when geared up with the precise instruments.

Edited by Sebastian Sinclair