Blockchain analytics firm Chainalysis announced on Wednesday its acquisition of Hexagate, a Web3 security provider, in response to the growing threat of crypto hacks and exploits.
“Together, Chainalysis and Hexagate provide a holistic risk solution that includes prevention, compliance, and remediation,” Chainalysis CEO Johathan Levin wrote in the announcement.
The sum it paid for Hexagate was not immediately clear. Decrypt has reached out for clarification.
The acquisition supports Chainalysis’ efforts to bolster trust across 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.
Hexagon has reportedly already safeguarded over $1 billion in customer funds through real-time threat detection and automated responses.
High-profile 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 occurred in the past two years, per to the announcement.
Chainalysis has scooped up Hexagate at a time when crypto thefts continue to rise at an alarming rate.
In August, the platform’s crypto crime report revealed an 84% spike in stolen funds, soaring from $857 million to $1.58 billion in the first seven months of 2024.
Ransomware payments also rose slightly, from $449.1 million to $459.8 million, making 2024 on set to be the highest-grossing year yet for such payments, as per the report.
Adding to the crypto ecosystem’s challenges, investment fraud in the U.S. reached an all-time high in 2023, with losses skyrocketing to $4.57 billion, according to the FBI.
Crypto-related scams accounted for 87% of those losses, totaling $3.96 billion. This marks a sharp rise from $3.3 billion in 2022 and an 18-fold increase from 2018’s $253 million.
CEO Jonathan Levin noted how such thefts often have devastating consequences, forcing projects to shut down and eroding investor confidence.
Still, he expressed hope, calling Web3 “the world’s safest financial system” when equipped with the right tools.
Edited by Sebastian Sinclair
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