Analytical company TRM Labs has introduced Beacon Network — the world’s first network that enables rapid response to crypto crimes in real time. This innovative project brings together the efforts of leading cryptocurrency exchanges, stablecoin issuers, and law enforcement agencies to prevent the illegal movement of funds before they are withdrawn from the blockchain.
This is reported by Business • Media
Extensive Industry Collaboration
The founders of Beacon Network include giants such as Coinbase, Binance, PayPal, Robinhood, Stripe, Kraken, Ripple, Crypto.com, Blockchain.com, Anchorage Digital, Bitfinex, HTX, Poloniex, OKX, Zodia Custody, 1inch, ChangeNow, and other leading market players. This alliance is unprecedented in the crypto industry and aims to block off-ramps for illegally obtained assets.
According to TRM Labs, since 2023, at least $47 billion in cryptocurrencies has been sent to addresses linked to illegal activities. In just 2025, losses from hacking attacks exceeded $2.3 billion. Typically, criminals quickly convert digital assets to fiat through exchanges, significantly complicating the work of law enforcement agencies.
How Beacon Network Works
Beacon Network is based on a rapid alert and coordination system:
- Investigators identify suspicious addresses, and information about them is instantly disseminated across the network;
- Participants receive timely alerts if suspicious funds arrive at an exchange or issuer;
- Exchanges can immediately block or verify such deposits before they become available for withdrawal.
This system provides the market with an effective early warning mechanism that allows for quick responses to money laundering attempts and protects users.
“Consumer protection and maintaining the integrity of the crypto ecosystem require continuous collaboration between the industry and law enforcement. The real-time tools of Beacon Network allow us to act instantly,” said CJ Rinaldi, Compliance Director at Kraken.
David Shuhman, Senior Vice President at PayPal, emphasized that the company is proud of its contribution to the creation of Beacon Network and its collaboration with market leaders and law enforcement to combat financial crimes in the cryptocurrency space in real time.
Valerie-Leila Jabber, Head of Global AML Program at Coinbase, noted the uniqueness of the initiative, emphasizing that it is a true early warning system that helps detect and freeze illegal assets.
Esteban Castagno, CEO of TRM Labs, highlighted that the main goal of Beacon Network is not only to enhance compliance levels but also to maximize the use of blockchain transparency, automate detection, and enable rapid response. This could make the cryptocurrency industry the safest financial system in the world.
Industry participants and law enforcement have gained a shared infrastructure for effectively combating crimes in the crypto sphere.
“Beacon Network sets a new standard by uniting the industry to work together to protect users and maintain the integrity of the crypto ecosystem,” emphasized Kate Ierman, Compliance Director at Blockchain.com.
Previously, TRM Labs experts uncovered the activities of the criminal group Embargo, which operated under a “ransomware-as-a-service” (RaaS) scheme and stole nearly $34.2 million in crypto assets since April 2024.