Binance Joins Crypto Crime "Kill Chain" to Freeze Funds in Real Time

Binance has joined the Beacon Network, a pioneering real-time crypto crime response coalition launched by TRM Labs. The network, which includes law enforcement agencies, traditional finance players, and leading cryptocurrency exchanges, aims to identify and freeze illicit crypto assets before they can be withdrawn or laundered. Founding members of the Beacon Network include Binance, Coinbase, Kraken, Robinhood, PayPal, and security researchers such as ZachXBT and the Security Alliance (SEAL). According to TRM Labs, the network creates an “unprecedented level of industry collaboration to block off-ramps for criminal funds,” addressing a growing threat in the crypto sector where over $47 billion has been sent to fraud-related addresses since 2023[2].

The Beacon Network operates by allowing verified members to flag suspicious wallet addresses, trace the movement of funds across the blockchain, and share information with connected services and law enforcement. When these flagged funds reach a participating exchange or service, automatic alerts are sent to ensure the funds are identified, tracked, and frozen before they can be cashed out. This process significantly reduces the window of opportunity for criminals to move stolen assets, a challenge that has been particularly evident in incidents such as the $1.5 billion Bybit hack earlier this year. In that case, the stolen funds moved through over 10,000 transactions within the first month, highlighting the need for real-time intervention[2].

The Beacon Network has already demonstrated success in tracking illicit funds. In one instance, law enforcement used the network to trace $1.5 million linked to an unidentified global scam and freeze it before it could be withdrawn from an exchange. Another case involved the identification and freezing of $800,000 in scam-related deposits at a major exchange. These actions underscore the network’s potential to serve as a first-of-its-kind “kill chain” for illicit crypto assets, moving from detection to action in minutes rather than days. TRM Labs emphasized that only verified users—such as law enforcement, vetted partners, and security researchers—are allowed to flag funds, ensuring the integrity and responsibility of the system[2].

The initiative is backed by TRM Labs and supported by major players across the crypto and traditional finance sectors. The coalition includes not only exchanges and payment platforms but also independent on-chain investigators, reflecting the collaborative nature of the effort. Ari Redbord, TRM Labs' Global Head of Policy, stated that the network is designed to address both high-profile heists and smaller-scale scams, including romance scams and “pig butchering” schemes. “Every fraudulent dollar matters,” he noted, highlighting the importance of protecting everyday users from financial exploitation[3].

Looking ahead, the Beacon Network aims to expand its impact by targeting major criminal actors, such as North Korean IT workers who have been linked to global crypto scams. The network also seeks to prevent terrorist financing and support the recovery of funds for victims. Additionally, TRM Labs has stressed the importance of finding new members to strengthen the network’s capabilities. The initiative aligns with broader regulatory and policy efforts to combat crypto crime, with the U.S. government and lawmakers increasingly emphasizing the need for robust anti-money laundering measures in the digital asset space[3].

Source: [1] Binance: Buy Bitcoin & Crypto - Apps on Google Play (https://play.google.com/store/apps/details?id=com.binance.dev) [2] Crypto giants launch 'Beacon Network' to track and freeze ... (https://cointelegraph.com/news/crypto-firms-launch-beacon-network-real-time-crypto-crime-tracking) [3] TRM Labs Launches Beacon Network to Stop ... (https://www.cryptoinamerica.com/p/trm-labs-launches-beacon-network)