The blockchain data analysis firm Chainalysis says it has developed an “integrated solution” designed to help law enforcement track stolen crypto.
The firm says the new solution relies on two primary tools.
The first is the firm’s preexisting blockchain investigation software, “Chainalysis Reactor,” which aims to help law enforcement officials track crypto across blockchains and identify on- and off-ramps.
The second part of the solution is a new development called “Wallet Scan,” which is designed to automate the discovery of derivation paths, according to Chainalysis.
Explains the firm,
“This eliminates the need to manually reconstruct wallets, allowing investigators to focus on recovering assets instead.”
Chainalysis also recently acquired Alterya, a fraud detection solution powered by artificial intelligence (AI).
The AI solution has worked with top crypto and fintech firms like Coinbase, Binance and Block and monitors more than $8 billion worth of fiat and crypto transactions a month, according to a recent press release. Alterya also detected more than $10 billion worth of payments sent to scams last year.
Total value loss in the digital asset sector due to hacks and scams last year exceeded $3.01 billion, a 15% increase from the 2023 total, according to the blockchain security firm PeckShield.
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