A coalition of leading figures in the crypto sector, along with law enforcement, security experts, and fintech companies, has established the Beacon Network — a real-time response system for crypto-related crimes that can assist in freezing illicit funds before they can be laundered or withdrawn.
Summary
- TRM Labs has launched the Beacon Network with significant support from prominent players in the crypto space.
- The initiative aims to identify and freeze stolen cryptocurrency before it can be converted to fiat currency.
Headed by blockchain security firm TRM Labs, the Beacon Network was unveiled on August 20 as the first comprehensive “kill chain” for addressing digital asset crimes, designed for rapid detection, flagging, and disruption of suspicious blockchain transactions.
Founding members include major crypto exchanges such as Coinbase, Binance, Kraken, and Robinhood, payment platforms like PayPal and Stripe, and compliance-focused firms such as Ripple, Anchorage Digital, and Blockchain.com, among others.
These members will collaborate with “leading federal law enforcement agencies” to identify suspicious wallet addresses and facilitate information-sharing across the network.
TRM Labs states that the Beacon Network represents a pivotal moment in the fight against crypto crime, transitioning from isolated and delayed responses to a collaborative, instantaneous action system involving both platforms and law enforcement. This network aims to halt stolen funds before they reach fiat conversion points.
Participants believe the network will be crucial in safeguarding users and restoring confidence in the crypto ecosystem.
“Safety and security form the cornerstone of crypto, and everyone committed to the future of our industry has a shared responsibility to uphold its integrity,” said Antonio Alvarez, Chief Compliance Officer of Crypto.com.
Each member aids the initiative by sharing verified intelligence, monitoring flagged wallets, and assisting authorities in tracing fund movements via the blockchain.
How will Beacon Network function?
The Beacon Network’s framework depends on automated alerts and a continuously updated database of identified wallet addresses. When any investigator or platform flags suspicious activity, the network instantly propagates that designation across interconnected wallets.
If those funds are transferred to any member exchange, the system promptly issues an alert, enabling the platform to pause the transaction pending fund withdrawal.
To prevent misuse, only approved users—including law enforcement, established exchanges, and accredited security experts—are permitted to flag addresses.
According to TRM Labs, every flag must be backed by robust evidence and a clear intention to act, as any misapplication of the system would compromise its credibility.
Beacon Network has already been tested
TRM Labs reports that the Beacon Network has already played a role in tracking millions of dollars worth of stolen assets.
In one instance, investigators flagged $1.5 million associated with a multinational scam, allowing a member exchange to freeze the funds. In another case, $800,000 in suspicious deposits were intercepted before the perpetrators could withdraw them.
The network targets a variety of criminal activities, including state-sponsored hacking, scams, and financing for terrorism.
A primary focus includes dismantling illicit networks operated by North Korean IT workers and hacking collectives, which TRM Labs notes are responsible for a significant portion of global crypto theft.
Billions lost in H1 2025
The prevalence of crypto crime has escalated in recent years, with 2025 on track to be one of the worst years on record. In the first half alone, criminals stole over $2.1 billion in digital assets across 75 incidents, with most losses resulting from infrastructure breaches, such as private key theft and front-end exploits.
The $1.5 billion Bybit hack in February 2025 accounted for nearly 70% of the total stolen funds this year, attributed to North Korean hackers, and involved more than 10,000 transactions within the first month, demonstrating how swiftly stolen funds can be laundered.
The groundwork for Beacon was laid a year earlier when TRM Labs partnered with Tether and TRON to launch the T3 Financial Crime Unit, aimed at monitoring illicit funds in real-time as they traverse the blockchain.
The T3 FCU concentrated on overseeing USDT transactions on the TRON blockchain and has successfully frozen over $100 million in questionable funds.
