Blockchain analytics firm Chainalysis has announced its acquisition of Hexagate, a Web3 security provider, in response to the increasing threat of crypto hacks and exploits. According to Chainalysis CEO Jonathan Levin, the acquisition will enable the two companies to offer a comprehensive risk solution that includes prevention, compliance, and remediation. The exact amount paid for Hexagate has not been disclosed.
This acquisition aligns with Chainalysis’ objective of enhancing trust across different blockchains by expanding beyond investigations into prevention. The company plans to integrate Hexagate’s machine learning-powered tools, which can detect and mitigate on-chain risks such as hacks, cyber exploits, and governance vulnerabilities.
Hexagate has reportedly already protected over $1 billion in customer funds through real-time threat detection and automated responses. Notable clients including Coinbase, Consensys, and Uniswap have relied on Hexagate to prevent attacks, with more than 98% of known hacks being detected before they occurred over the past two years.
Chainalysis’ acquisition of Hexagate comes at a time when crypto thefts are on the rise. According to the platform’s crypto crime report, stolen funds have increased by 84% from $857 million to $1.58 billion in the first seven months of 2024. Ransomware payments have also seen a slight rise, from $449.1 million to $459.8 million, making 2024 set to be the highest-grossing year yet for such payments.
Furthermore, investment fraud in the U.S. reached a record high in 2023, with losses amounting to $4.57 billion, according to the FBI. Crypto-related scams accounted for 87% of these losses, totaling $3.96 billion. This marks a significant increase from $3.3 billion in 2022 and an 18-fold increase from the $253 million recorded in 2018.
Jonathan Levin, the CEO of Chainalysis, emphasized the devastating consequences of such thefts, which often lead to project shutdowns and a loss of investor confidence. However, he expressed optimism, stating that Web3 can become the safest financial system in the world when equipped with the right tools.