Blockchain analytics firm Chainalysis announced its acquisition of Hexagate, a Web3 security provider, on Wednesday in response to the growing threat of hacks and cryptographic exploits.
“Together, Chainalysis and Hexagate provide a comprehensive risk management solution that includes prevention, compliance and remediation,” Johanthan Levin, CEO of Chainalysis. wrote in the ad.
It was not immediately clear how much was paid for Hexagate. Decrypt asked for clarification.
We spent 10 years following the money. Now is the time to stop this money from being stolen. Welcome to the era of secure smart contracts with proper monitoring and real-time threat detection. Announcing our acquisition of @hexagate_
– Jonylevin (@jony_levin) December 18, 2024
The acquisition supports Chainalysis’s efforts to build trust in various blockchains by going beyond prevention investigations.
Chainalysis is set to integrate Hexagate’s machine learning tools, which detect and mitigate on-chain risks such as hacks, cyber exploits and governance vulnerabilities, the companies said.
Hexagon has reportedly already protected over $1 billion in customer funds through real-time threat detection and automated responses.
Top clients like Coinbase, Consensys and Uniswap, among others, have relied on Hexagate to prevent attacks, with more than 98% of known hacks detected before they occur over the past two years, according to the ‘announcement.
Chainalysis picked up Hexagate at a time when crypto thefts continue to increase at an alarming rate.
In August, the platform’s crypto crime report revealed an 84% increase in stolen funds, from $857 million to $1.58 billion in the first seven months of 2024.
Ransomware payments also increased slightly, from $449.1 million to $459.8 million, making 2024 the most profitable year yet for such payments, according to the report.
Adding to the crypto ecosystem’s challenges, investment fraud in the United States hit an all-time high in 2023, with losses climbing to $4.57 billion, according to the FBI.
Crypto-related scams accounted for 87% of these losses, totaling $3.96 billion. That’s a big increase from $3.3 billion in 2022 and an 18-fold increase from $253 million in 2018.
CEO Jonathan Levin highlighted how such thefts often have devastating consequences, forcing projects to close and eroding investor confidence.
He nevertheless expressed hope, calling Web3 “the most secure financial system in the world” when equipped with the right tools.
Edited by Sébastien Sinclair
Start each day with the biggest news stories of the day, plus original features, a podcast, videos and more.
