Crypto Giants Unite in Real-Time War on Illicit Digital Cash

TRM Labs has launched the Beacon Network, a real-time crypto crime response network designed to intercept illicit funds before they can be laundered into fiat. The initiative, developed in collaboration with law enforcement, exchanges, and stablecoin issuers, brings together a diverse group of founding members, including Coinbase, Binance, PayPal, Robinhood, Stripe, Kraken, Ripple, and other major industry players. These participants aim to enhance the crypto ecosystem’s safety by enabling rapid identification and freezing of assets linked to fraudulent or malicious activity.

The network operates by allowing verified investigators to flag cryptocurrency wallets tied to crimes such as fraud, ransomware, or hacking. Once flagged, Beacon Network automatically propagates risk labels across related addresses and alerts participating exchanges when illicit funds attempt to enter their platforms. This automated process allows platforms to review and freeze deposits before they can be withdrawn or converted to fiat. The system is intended to shift the industry from reactive to proactive measures in combating crypto crime, which has surged in recent years.

According to TRM Labs, over $47 billion in cryptocurrency has been sent to fraud-linked addresses since 2023, while hackers have already stolen more than $2.3 billion from the crypto ecosystem in 2025 alone. Beacon Network’s real-time intelligence model is designed to prevent such funds from being cashed out or hidden. For instance, after the $1.5 billion ByBit hack earlier this year, stolen funds moved through over 10,000 transactions within a month, highlighting the urgency for faster response systems like Beacon Network.

Industry leaders have praised the initiative as a critical step in strengthening crypto security. Valerie-Leila Jaber, Global Head of Anti-Money Laundering at Coinbase, emphasized that Beacon Network functions as a true early warning system, enabling platforms to freeze illicit assets before they are lost. Similarly, Noah Perlman, Chief Compliance Officer at Binance, noted that the collaboration reinforces trust and security in the crypto ecosystem, which are essential for broader adoption. Ripple’s Andrew Rosenberg added that the network represents a new era of real-time intelligence and cross-sector collaboration.

The initiative has also garnered support from law enforcement, with leading federal agencies contributing by flagging addresses associated with critical threats. Security researchers and firms such as ZachXBT, Operation Shamrock, and CryptoForensics Investigators provide ongoing monitoring to identify emerging threats. The collaboration spans multiple jurisdictions, including the U.S., Canada, the U.K., Germany, and others, reflecting the global nature of the threat landscape.

As crypto crime becomes increasingly complex and fast-moving, Beacon Network’s real-time response model is seen as a necessary evolution in the fight against illicit activity. By leveraging blockchain’s inherent transparency and automated detection capabilities, the network aims to prevent criminal actors from exploiting the crypto ecosystem. The initiative also serves as a blueprint for how public-private partnerships can enhance financial crime prevention, particularly in an industry where speed and agility are paramount.

Source: [1] TRM Labs Launches Beacon Network, the First Real-time Crypto Crime Response Network (https://www.globenewswire.com/news-release/2025/08/20/3136350/0/en/TRM-Labs-Launches-Beacon-Network-the-First-Real-time-Crypto-Crime-Response-Network.html) [2] CoinBriefer: Beacon Network (https://cryptobriefing.com/trm-labs-launches-beacon-network/) [3] LedgerInsights: Binance, Coinbase, PayPal part of TRM Labs' new crypto crime response network (https://www.ledgerinsights.com/binance-coinbase-paypal-part-of-trm-labs-new-crypto-crime-response-network/) [4] TRM Labs (https://www.trmlabs.com)