Bitcoin News Today: TRM Labs and Major Crypto Firms Launch Beacon Network to Combat Illicit Transactions in Real Time

TRM Labs, in partnership with major cryptocurrency exchanges and financial firms including Coinbase, Binance, Kraken, Robinhood, PayPal, Anchorage Digital, and Ripple, has launched the Beacon Network—a real-time initiative aimed at identifying, tracking, and freezing illicit cryptocurrency transactions [1]. The initiative seeks to combat onchain crypto crime and prevent the illicit movement of funds into the fiat ecosystem via offramps. The Beacon Network brings together law enforcement, investigators, payment processors, and exchanges to collaborate in addressing cryptocurrency-based crime [2].

The network allows verified members to flag suspicious wallet addresses linked to criminal activity, enabling automatic alerts when these funds appear on a participating exchange or service [3]. This rapid response allows institutions to freeze illicit assets before they can be laundered or withdrawn, significantly reducing the time between detection and action. As of 2023, at least $47 billion in cryptocurrency has been sent to fraud-linked addresses, a figure that TRM Labs estimates could be much higher [4].

The Beacon Network functions as an end-to-end system for tracking and freezing illicit assets, reducing the typical response time from days to minutes [5]. This is especially important in cases involving high-speed transactions, such as those seen in the aftermath of the $1.5 billion Bybit hack, where stolen funds moved through thousands of transactions within a short period. Previously, law enforcement and platforms operated in isolation, but the Beacon Network enables near-instant coordination [6].

Verification and accountability are critical components of the system. Only vetted users—such as law enforcement, security researchers, and verified partners—can flag an address as illicit. TRM Labs has emphasized that misuse of the system is not tolerated, as each flag indicates that the funds should be taken seriously [7]. The initiative also targets high-impact threats, including addresses linked to North Korean cybercriminal groups, with the objective of disrupting criminal networks and recovering stolen funds [8].

The Beacon Network is open to new participants, with free affiliate membership available for verified exchanges and law enforcement partners. This reflects the growing consensus that crypto crime must be addressed through coordinated, real-time action. Its integration with major exchanges, stablecoin issuers, and law enforcement agencies marks a pivotal shift in how the crypto industry and regulators can work together to combat financial crime [9].

Valerie-Leila Jaber, Global Head of Anti-Money Laundering at Coinbase, praised the initiative, calling it a “true early warning system” that helps identify and freeze illicit assets for law enforcement to recover [10].

Source: [1] TRM Labs and Crypto Giants Launch Beacon Network to Combat Crypto Crime (https://news.bitcoin.com/trm-labs-and-crypto-giants-launch-beacon-network-to-combat-crypto-crime/)

[2] TRM Labs Launches Beacon Network to Combat Crypto ... (https://www.ainvest.com/news/trm-labs-launches-beacon-network-combat-crypto-crime-real-time-2508/)

[5] Blockchain's New Shield: Real-Time Crime Tracking Unites ... (https://www.ainvest.com/news/blockchain-shield-real-time-crime-tracking-unites-industry-giants-2508/)

[9] Beacon Network Crypto Brings Real-Time Security (https://coinfomania.com/beacon-network-crypto/)