Alex Zeltcer of Explores Ai and Crypto in 2024

Alex Zeltcer of Explores Ai and Crypto in 2024

Security will always be an issue in the cryptocurrency space, especially as mainstream industry adoption is rising. This has helped the process but has also created consequential situations where critical players hesitate to integrate ecosystems or deploy platforms.

In turn, the slowdown enables bad actors to engage in criminal actions. This gives regulators the impetus to call crypto-labeled assets criminal, though that is certainly not the case on a large scale. The cycle of events continues, but the advent of AI-enabled cybersecurity solutions is a game-changer, offering a powerful tool in the fight against criminal actions.

Integrating AI tech into cybersecurity ecosystems makes innovative solutions possible, beating the bad guys at every turn. Additionally, AI ecosystems think ahead, providing cover and increasing the industry standard and adoption.

Alex Zeltcer, Co-founder and CEO at sat down with us and explained important concepts related to AI in crypto security, nSure’s partnership with Merkle Science, and more. Here is what he had to say.


How does’s AI-driven payment fraud prevention platform contribute to enhancing security in the crypto industry?

“ leverages our custom AI models to stop fraudsters at the gates of crypto. Our system makes decisions on fiat-to-crypto transactions in less than 500ms, using immense data and behavior analysis to detect and prevent scalable fraud. As a result, more users are able to begin their crypto journey while fraud is stopped.”


What challenges does the crypto industry face in terms of fraud, and how can this partnership address them?

“In today’s digital landscape, the misuse of Know Your Customer (KYC) protocols not only leads to subpar user experiences and increased friction but also contributes to the delayed delivery of digital goods. This partnership presents a pivotal opportunity for organizations to tackle fraud effectively, both within the confines of traditional systems and in emerging blockchain-based environments. By leveraging this collaboration, businesses can fortify their defenses against fraudulent activities occurring both on and off-chain, thereby safeguarding their operations and enhancing the trust and satisfaction of their users.”


How does the collaboration between and Merkle Science impact the adoption of digital currency?

“Our collaboration serves as a cornerstone in creating a safer environment for users engaging with cryptocurrency.’s enhancements in user experience for fiat-to-crypto on-ramps and exchanges, combined with Merkle Science’s on-chain monitoring capabilities for identifying and addressing bad actors, provide a robust framework for safeguarding the crypto ecosystem.” 

“By seamlessly integrating improved user experiences with proactive on-chain monitoring, we empower users to transact with confidence while mitigating risks associated with fraudulent activities. This partnership underscores our commitment to enhancing security and usability in the crypto space, ultimately fostering trust and enabling broader adoption of digital currencies.”


What are the key features of’s fraud prevention platform?

“Our approach boasts approval rates of up to 95%, bolstered by’s comprehensive chargeback coverage. Central to our success is the implementation of custom-trained AI models tailored to each individual customer’s needs and specifications.” 

“These sophisticated models serve as the backbone of our operations, enabling us to effectively mitigate risks and optimize approval processes. With our chargeback coverage and the precision of our AI-driven systems, we ensure a seamless and secure experience for our clients, underpinning our commitment to delivering excellence in every aspect of our service.”


What role does AI play in identifying and preventing crypto fraud?

“At, artificial intelligence lies at the heart of our strategy to combat fraudulent activities while facilitating seamless cryptocurrency transactions for everyday users. Our innovative approach involves deploying dedicated AI models tailored to the unique requirements of each individual customer, leveraging their specific data and needs.” 

“By customizing our AI models in this manner, we empower our clients with personalized solutions that effectively thwart fraudsters while streamlining the purchasing process for legitimate users. This emphasis on bespoke AI technology underscores our commitment to delivering cutting-edge security solutions that adapt to the evolving landscape of cryptocurrency transactions, ensuring a safe and user-friendly experience for all.”

How can businesses leverage this partnership to ensure secure crypto transactions?

“Businesses seeking to bolster the security of their cryptocurrency transactions can turn to for comprehensive support and expertise. Our team is dedicated to assisting organizations in safeguarding their assets, offering solutions that cater to both off-chain and on-chain transactions.” 

“For businesses aiming to fortify their security measures on-chain, we facilitate connections with Merkle Science, enabling them to benefit from advanced monitoring and risk mitigation capabilities. Whether it’s securing traditional off-chain transactions or navigating the complexities of blockchain-based operations, stands ready to provide tailored support and guidance, empowering businesses to navigate the cryptocurrency landscape with confidence and peace of mind.”

What are the potential benefits for both merchants and consumers due to improved fraud prevention?

“For merchants, partnering with offers a multitude of advantages that directly impact their bottom line. Our solutions deliver higher approval rates, translating to increased revenue potential as more transactions are successfully processed. Additionally, merchants enjoy full chargeback liability coverage provided by, mitigating financial risks associated with fraudulent activities. Furthermore, our platform enhances the user experience for customers, streamlining the checkout process and minimizing verification requirements, thereby reducing friction and increasing conversion rates.”

“On the consumer side, the benefits are equally compelling. Our solutions facilitate an easier checkout experience with fewer verification hurdles, ensuring swift and hassle-free transactions. Furthermore, consumers benefit from instant delivery of digital goods, eliminating delays and enhancing overall satisfaction. Most importantly, by creating a safer ecosystem for crypto users, partnering with fosters trust and confidence among consumers, encouraging broader adoption and usage of digital currencies.”


How does’s solution streamline onboarding new customers and partners?

“’s innovative solution revolutionizes the KYC process by optimizing its usage, ensuring it’s only applied when necessary for regulatory compliance purposes. By limiting KYC usage in this manner, we alleviate unnecessary burdens for both businesses and consumers, enabling smoother transactions and reducing friction. Moreover, our platform’s lightning-fast decision-making time of 300ms or less facilitates instant delivery of digital goods, enhancing the overall purchasing experience.”

“This swift turnaround time not only expedites transactions but also simplifies the buying process for newcomers to the cryptocurrency space, minimizing the time spent navigating its complexities. Ultimately,’s approach not only enhances efficiency and convenience but also lowers barriers to entry, fostering broader adoption and accessibility within the crypto market.”


What is the impact of crypto thefts on the industry and the need for robust fraud prevention measures?

“The cryptocurrency industry has confronted significant challenges stemming from theft and malicious actors over time. Given its status as a digital equivalent of cash with high liquidity, it inherently attracts nefarious elements. The proliferation of bad actors within the crypto market not only poses risks but also undermines consumer confidence and safety. Consequently, it’s paramount for the industry to prioritize the combat against fraud and take decisive actions to minimize the accessibility of cryptocurrencies to fraudsters. By addressing these issues proactively, the industry can create a safer environment for consumers to participate in crypto transactions, thereby fostering trust and sustainability in the marketplace.”


 What legal and regulatory aspects are relevant to fraud prevention in the crypto space?

“A lot of exchanges are using KYC for fraud prevention. KYC is critical for anti-money laundering efforts, but it is a poor tool for fraud prevention. Our experience is that 76% of all fraud that we are seeing comes from KYC-verified accounts.”


How can data mining software enhance fraud analysis in the crypto industry?

“Our data science lab is constantly researching optimal methods to generate the highest accuracy possible in detecting and preventing fraud. Among them, we are of course using data mining techniques. For instance, statistical methods, such as Benford’s Law of Anomalous Numbers. This is one of multiple techniques we are employing today.”


How does the behavior-based approach used by Merkle Science’s Compass work in fraud prevention?

“While we can’t speak for Merkle Science, I can shed light on’s approach, which centers on behavior-based monitoring to facilitate near-instant decision-making. This capability is pivotal for ensuring the swift and secure delivery of digital goods, a key component of our platform. Delving deeper, the need for rapid decision-making is critical in guaranteeing the safety of cryptocurrency transactions.”

“By leveraging behavior-based monitoring, we can swiftly assess and validate transactions, significantly reducing the window of opportunity for fraudulent activities. This real-time analysis not only expedites the delivery process but also bolsters the confidence of both businesses and consumers in the safety and reliability of crypto transactions.”


What strategies can be employed to identify suspicious activity or patterns in financial records?

“Transaction monitoring is a crucial component to any strategy implemented to fighting cutting-edge fraud. It’s imperative for companies to integrate AI solutions that are specifically customized to their unique business requirements. This tailored approach ensures that the AI accurately identifies potential threats and adapts to the intricacies of each organization’s operations. Moreover, speed is of the essence in combating fraud effectively. Leveraging the fastest decision-making capabilities while upholding accuracy is paramount. By prioritizing both speed and precision in AI-driven monitoring systems, businesses can swiftly identify and mitigate fraudulent activities, thereby safeguarding their assets and maintaining trust among their user base.”


How do you balance security measures with user convenience in the crypto space?

“The crypto industry exhibits a significant misalignment on this issue, often opting for overly aggressive security measures at the expense of user convenience. However, leveraging provides a unique opportunity to strike a balance between security and user experience. By harnessing our technology, businesses can offer a streamlined user experience without compromising on security measures. This approach not only enhances user satisfaction but also translates into increased revenue streams.”

“Furthermore, our scalable fraud detection capabilities ensure that fraudulent activities are promptly identified and halted, bolstering the overall security posture of businesses in the crypto space. Embracing represents the optimal strategy for navigating the delicate balance between user convenience and robust security measures in the cryptocurrency industry.”


What are the ethical considerations when investigating potential fraud cases?

“In cutting-edge sectors like cryptocurrency, video gaming, and digital gift cards, the discourse around fraud has shifted from being purely ethical to an integral aspect of doing business in today’s landscape. Striking the right balance between fraud prevention, revenue generation, and operational costs is imperative. Aiming for an excessively low fraud rate may inadvertently lead to missed opportunities in terms of customer acquisition and revenue.”

“Therefore, companies must adopt a strategic approach that optimizes their fraud prevention measures while maximizing revenue and minimizing operational costs. This nuanced balancing act ensures a sustainable, profitable business model within these evolving sectors.”

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