In summary
- Chainalysis acquired Hexagate to strengthen security on Web3 in the face of increasing hacks and exploits.
- Hexagate protected over $1 billion by detecting threats in real time with machine learning.
- Crypto attacks grew 84% in 2024, reaching $1.58 billion, according to a Chainalysis report.
Blockchain analytics firm Chainalysis announced on Wednesday the acquisition of Hexagate, a Web3 security provider, in response to the growing threat of Cryptocurrency hacks and exploits.
“Together, Chainalysis and Hexagate offer a comprehensive risk solution that includes prevention, compliance and remediation,” Chainalysis CEO Johathan Levin wrote in the announcement.
The amount paid by Hexagate was not clarified in the statement. Decrypt has been in touch for clarification.
The acquisition supports Chainalysis’ efforts to strengthen trust in various blockchains by expanding beyond investigations into prevention.
Chainalysis is set to integrate Hexagate’s machine learning-powered tools, which detect and mitigate on-chain risks such as hacks, cyber exploits and governance vulnerabilities, the companies said.
Hexagate has already protected more than $1 billion in client funds through real-time threat detection and automated responses.
High-profile clients such as Coinbase, Consensys and Uniswap, among others, have trusted Hexagate to prevent attacks, with more than 98% of known hacks detected before they occurred in the last two years, according to the announcement.
In August, the platform’s cryptocurrency crime report revealed an 84% increase in stolen funds, rising from $857 million to $1.58 billion in the first seven months of 2024.
Ransom payments also increased slightly, from $449.1 million to $459.8 million, putting 2024 on track to be the biggest year yet for such payments, according to the report.
Adding to the challenges of the crypto ecosystem, investment fraud in the US reached an all-time high in 2023, with losses soaring to $4.57 billion, according to the FBI.
Cryptocurrency-related scams accounted for 87% of those losses, totaling $3.96 billion. This marks a sharp increase from $3.3 billion in 2022 and an 18-fold increase from $253 million in 2018.
The company’s CEO, Jonathan Levin, noted how such thefts often have devastating consequences, forcing projects to close and eroding investor confidence.
Still, he expressed hope, calling Web3 “the most secure financial system in the world” when equipped with the right tools.
Edited by Sebastian Sinclair
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