TRM Labs Launches Beacon Network to Freeze Crypto Fraud in Real Time

TRM Labs has joined forces with major cryptocurrency platforms and financial institutions, including Binance and Coinbase, to launch the Beacon Network—a groundbreaking initiative designed to combat illicit activity in the crypto space in real-time. This collaboration marks the first coordinated effort to detect, track, and freeze suspicious transactions as they occur, leveraging the combined resources of crypto exchanges, payment processors, law enforcement, and security researchers.

The Beacon Network operates by enabling verified stakeholders to flag wallet addresses associated with illegal activities such as fraud, scams, and hacking. Once a suspicious address is reported, the network tracks the movement of funds across the blockchain and automatically sends alerts to participating exchanges and services. These alerts empower institutions to freeze the funds before they can be laundered or converted into fiat currency, significantly reducing the time between detection and action [2].

TRM Labs emphasized the importance of speed in addressing crypto crime, noting that at least $47 billion has been directed to fraud-related addresses since 2023, with actual figures likely higher. The firm cited the Bybit hack as a case study, where $1.5 billion in stolen funds was dispersed through over 10,000 transactions in just one month. Such rapid movement of assets often outpaces traditional investigative methods, making it difficult for law enforcement to respond effectively [3].

The Beacon Network is already showing promise in real-world scenarios. In one case, a law enforcement agency identified $1.5 million linked to a global scam and blacklisted the associated address to prevent further withdrawals. In another, investigators detected $800,000 in scam-related deposits at a major exchange and triggered an immediate freeze. These examples highlight the network’s ability to act decisively, particularly when only verified users are allowed to flag addresses, ensuring accountability and minimizing the risk of abuse [4].

Key founding members of the Beacon Network include major crypto exchanges like Binance, Coinbase, Kraken, and Robinhood, as well as traditional financial institutions such as PayPal and digital asset services like Anchorage Digital. Security researchers, including ZachXBT and the Security Alliance (SEAL), also contribute to the network. Notably, leading federal law enforcement agencies globally are participating in the initiative, flagging addresses linked to critical threats and helping to prevent illicit actors from cashing out [5].

The network’s primary focus is on disrupting hackers, scammers, and North Korean-linked cybercriminals, while also working to prevent terrorist financing and aid in the recovery of stolen funds. TRM Labs has emphasized that expanding the network by onboarding more verified participants remains a top priority, as broader participation can enhance the system’s effectiveness [6].

By creating what it calls the first end-to-end “kill chain” for illicit crypto assets, TRM Labs aims to shift the industry’s approach from reactive to proactive enforcement. The ability to act within minutes rather than days could represent a major turning point in the fight against financial crime in the digital asset space [7].

Source:

[1] TRM Labs Launches Beacon Network, the First Real-time

https://www.trmlabs.com/resources/blog/trm-labs-launches-beacon-network-the-first-real-time-crypto-crime-response-network

[2] TRM Labs Launches Beacon Network to Combat Crypto ...

https://coincentral.com/trm-labs-launches-beacon-network-to-combat-crypto-crime-with-ripple-binance-and-coinbase/

[3] Crypto Giants Launch 'Beacon Network' to Track and Freeze ...

https://cointelegraph.com/news/crypto-firms-launch-beacon-network-real-time-crypto-crime-tracking

[4] A Real-Time Crypto Crime Response Initiative

https://www.binance.com/en/blog/security/2582058086078541151

[5] Beacon Network Unites Crypto Giants in Real-Time War ...

https://www.ainvest.com/news/beacon-network-unites-crypto-giants-real-time-war-illicit-funds-2508/

[6] TRM Labs Launches Beacon Network, the First Real-time

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

[7] Techmeme

https://www.techmeme.com/250820/p56