TRM Labs has launched Beacon Network, a real-time crypto crime response network developed in collaboration with law enforcement, exchanges, and stablecoin issuers, aimed at preventing illicit funds from leaving the blockchain.
Founding members include Coinbase, Binance, PayPal, Robinhood, Stripe, Kraken, Ripple, Crypto.com, Zodia Custody, Blockchain.com, Anchorage Digital, Bitfinex, HTX, Poloniex, OKX, LFJ, 1inch, Rhino.fi, Coinspot, and ChangeNow.
Leading federal law enforcement agencies are contributing to the network by flagging addresses linked to criminal activity, triggering alerts that enable platforms to respond before funds are withdrawn.
Security researchers and firms such as ZachXBT, Security Alliance, zeroShadow, Hypernative, Operation Shamrock, and CryptoForensics Investigators provide continuous monitoring.
TRM Labs data indicates that at least US$47 billion in cryptocurrency has been sent to fraud-related addresses since 2023, with the true figure likely higher due to underreporting by victims.
This year has also seen record-breaking thefts, including over US$2.3 billion stolen from the cryptocurrency ecosystem.
The US$1.5 billion Bybit hack illustrates the speed at which stolen funds can move: over 10,000 transactions occurred within the first month after the attack.
Beacon Network allows for real-time action on flagged addresses.
Verified investigators flag wallets linked to financial crime, and the network propagates these labels across related addresses.
When funds reach a participating platform, alerts are triggered instantly, allowing exchanges and issuers to review and hold deposits before withdrawal.
Verified exchanges and law enforcement partners can join the network at no cost.
CJ Rinaldi, Chief Compliance Officer at Kraken, said,
“Protecting consumers and safeguarding the integrity of the crypto ecosystem requires seamless collaboration across industry and law enforcement. Beacon Network’s real‑time intelligence allows us to act within moments, reinforcing Kraken’s commitment to a safe and trusted marketplace for digital assets.”
TRM Labs co-founder Esteban Castaño stated,
“This isn’t about adding another layer of compliance. It’s about unlocking the full potential of crypto: real-time transparency, automated detection, and rapid response. Beacon Network proves that with the right infrastructure, crypto can be the most secure financial system in the world.”
Beacon Network continues to expand globally, offering verified members the ability to track and act on illicit funds in real time.
The network is open to law enforcement agencies, stablecoin issuers, DeFi platforms, centralised exchanges, security researchers, and other trusted members of the cryptocurrency ecosystem.
It focuses on preventing funds linked to hacks, scams, terrorism financing, and other high-risk activity from leaving the blockchain.
Only verified “Flaggers” from vetted agencies, partner-level members, and selected security researchers can flag addresses.
Featured image credit: Edited by Fintech News America, based on image by Burdun via Freepik
