American blockchain analytics firm Chainalysis has acquired Israeli cybersecurity startup Hexagate, a company specializing in Web 3.0 and blockchain security solutions. While the purchase price was not disclosed, industry estimates place it around $60 million. Following the acquisition, Hexagate will maintain its current operations, and all 20 of the company's employees, based in Israel, will continue working under Chainalysis.
This acquisition marks the first for Chainalysis in Israel, a country known for its cybersecurity expertise. Chainalysis, which develops transaction analysis and blockchain data accessibility tools, serves a broad range of clients, including financial institutions, governments, and law enforcement agencies. The company employs approximately 900 people worldwide and continues to grow its influence in the blockchain space.
Hexagate’s Rapid Growth and Success
Hexagate was founded in 2022 by Yaniv Nissenbaum (CEO) and Niv Yehezkel (CTO), both seasoned entrepreneurs with deep backgrounds in cybersecurity. The company quickly gained traction and secured $8.6 million in seed funding, led by Entry Capital, with participation from Samsung Next, INT3, Northside Ventures, and entrepreneurs from Vdoo and Medigate—previous companies where the founders had worked.
Hexagate’s focus is on providing innovative security tools to safeguard Web 3.0 and blockchain networks. The company gained significant attention after Niv Yehezkel identified a vulnerability in the $5 billion Polygon blockchain network, leading the founders to pivot their efforts toward tackling some of the toughest security challenges in the blockchain industry. Their work has already saved millions in potential losses for leading clients.
Founders’ Backgrounds and Industry Impact
Yaniv Nissenbaum has a strong cybersecurity background, having served in the IDF's elite cyber unit before working as a cyber consultant for various security agencies. His entrepreneurial journey includes founding Scientra, an algo-trading startup, and co-founding Jumper Labs, which offered virtual testing systems for IoT products. He also played a key role in Vdoo, which was acquired by JFrog.
Niv Yehezkel, the CTO, also served in the IDF’s Unit 8200, Israel’s renowned intelligence unit. He has been passionate about cyber research since his teenage years and went on to hold key positions in Medigate, which was later sold to Claroty. His deep understanding of vulnerabilities led to Hexagate’s success in the blockchain security field.
A Rapid Growth Trajectory
Despite launching amid a turbulent market, Hexagate quickly gained a strong foothold in the blockchain sector. In its first year of sales, the company reached an annualized revenue (ARR) of several million dollars. It secured dozens of high-profile clients, including Coinbase, Polygon, EigenLayer, Uniswap, and ConsenSys. These clients credited Hexagate with saving over $1 billion by providing timely alerts and protecting them from potential cyber threats.
“We realized that the blockchain world was rife with security issues, with billions of dollars being stolen easily,” said Nissenbaum. “With our expertise, we saw an opportunity to tackle these challenges head-on and help companies safeguard their assets.”
Chainalysis Expands Blockchain Security Capabilities
Chainalysis’ acquisition of Hexagate underscores the growing importance of cybersecurity in the blockchain ecosystem. As blockchain technology continues to evolve, ensuring the security of decentralized networks has become a top priority for industry leaders. The integration of Hexagate’s advanced security tools will further enhance Chainalysis' position as a leader in the blockchain analytics space, providing its clients with critical insights into potential threats and vulnerabilities.
The acquisition also highlights Israel’s ongoing role as a hub for cybersecurity innovation, with startups like Hexagate making significant contributions to the global security landscape.
With Hexagate’s team now on board, Chainalysis is poised to strengthen its security offerings, enabling blockchain platforms to better protect themselves from emerging threats in an increasingly complex digital environment.
