TRM Labs and Major Crypto Firms Launch Beacon Network to Track and Freeze Illicit Funds in Real Time

TRM Labs has launched the Beacon Network, a collaborative initiative designed to combat cryptocurrency-related crime by enabling real-time tracking and freezing of illicit funds. The platform unites major players in the crypto and traditional finance sectors, including Coinbase, Binance, Kraken, Robinhood, PayPal, Anchorage Digital, and Ripple, as well as security researchers like ZachXBT and the Security Alliance (SEAL). The network operates as an “end-to-end kill chain” for criminal assets, allowing verified users to flag suspicious wallet addresses, trace illicit movements across the blockchain, and alert participating entities to prevent further activity [1].

The initiative aims to address the speed at which stolen cryptocurrency is moved before authorities can intervene. TRM Labs highlighted that at least $47 billion has been sent to fraud-related addresses since 2023, though the figure is likely an underestimate. The Beacon Network has already demonstrated its effectiveness, with one case involving a law enforcement agency that used the platform to trace and freeze $1.5 million from a global scam. In another instance, a major exchange flagged and froze $800,000 in scam-related deposits [1].

The Beacon Network operates on a system of verified users, including law enforcement agencies, vetted partners, and security researchers, who are authorized to flag illicit activity. TRM Labs stressed that the process is taken seriously, with each flag signaling the need for immediate action. The firm also emphasized that misuse of the system would not be tolerated and that the network is focused on targeting large-scale criminal actors, including hacker groups and North Korean IT teams involved in scamming crypto firms globally [1].

The platform is already in use and has shown success in tracking funds from cybersecurity breaches. For example, the $1.5 billion Bybit hack earlier this year resulted in stolen funds being dispersed across 10,000 transactions in a single month. The Beacon Network aims to close the response gap by enabling action within minutes rather than days. Traditionally, law enforcement and crypto platforms have operated in isolation, but this initiative fosters instant, cross-platform collaboration to counter financial crime more effectively [1].

TRM Labs has identified the expansion of the Beacon Network as a key strategic priority, highlighting the importance of recruiting new participants. The initiative aligns with broader efforts by crypto firms and regulators to address growing concerns around money laundering and illicit financial activity. By integrating real-time monitoring with rapid response capabilities, the Beacon Network marks a shift toward a more proactive approach in the fight against crypto crime [2].

Source:

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

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