The blockchain data analysis firm Chainalysis states that it has developed an “integrated solution” aimed at assisting law enforcement in tracking stolen cryptocurrencies.

The firm indicates that the new solution relies on two primary tools. The first is the firm’s existing blockchain investigation software, “Chainalysis Reactor,” which is designed to aid law enforcement officials in tracking cryptocurrencies across blockchains and identifying on- and off-ramps. The second component of the solution is a new development called “Wallet Scan,” which is intended to automate the discovery of derivation paths, according to Chainalysis.

The firm explains, “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 collaborated with leading crypto and fintech firms such as Coinbase, Binance, and Block, monitoring over $8 billion worth of fiat and crypto transactions each month, according to a recent press release. Alterya also detected more than $10 billion worth of payments sent to scams last year.

The total value loss in the digital asset sector due to hacks and scams last year exceeded $3.01 billion, representing a 15% increase from the 2023 total, according to the blockchain security firm PeckShield.

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