Chainalysis announced today that it has acquired Hexagate, an Israeli Web3 security company. Hexagate uses machine learning to identify unusual transactions and patterns across blockchain networks.
Hexagate’s products have helped prevent the loss of more than $1 billion in customer funds. Big companies like Coinbase and Consensys, among others, have patronised the firm. Hexagate is meant to provide fast solutions for the identification and mitigation of risks in the Web3 space.
This acquisition will help Chainalysis offer a complete security suite that includes prevention, compliance, and risk management with Hexagate’s technology. In the press release, Chainalysis CEO Jonathan Levin discussed why the company is now shifting focus.
He said that over the past decade, Chainalysis has been oriented towards tracking how money moves through investigations. “Now it’s time to prevent the money from being stolen,” said Leven.
He emphasized that security is a very important aspect. He elaborated that the tools of Hexagate, such as monitoring, fixing problems, and investigating, are very essential in protecting digital assets. Levin also praised Hexagate for identifying over 98% of known hacks before they occurred.
Meanwhile, the Web3 space is growing rapidly, and with its growth, there is an increase in the demand for better security. Smart contracts are increasingly being used to transfer value on blockchain networks and require protection. As the use of stablecoins, layer 1 and layer 2 protocols, and wallets is increasing, it becomes very important to secure these systems.
Shashank Agrawal, Head of Protocol Security at Coinbase, commented on the collaboration. According to him, “Hexagate has become an integral part of on-chain security at Coinbase. Their real-time on-chain threat and risk detection and Base ecosystem monitoring solution for all Base builders has provided us with the broadest coverage for Coinbase and Base, ensuring the safety of our users and reinforcing trust across anything we build or do on-chain.”
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