A consortium of heavyweights of the crypto-industry, law enforcement agencies, security researchers and fintech companies has come together to form the Beacon Network-a real-time crypto crime response system that can help freeze illegal funds before they can be balanced or withdrawn.
Summary
- TRM Labs launched Beacon Network with the support of heavyweights from the crypto industry.
- The system is designed to mark and freeze stolen crypto funds before they touch Fiat-Off-ramps.
Beacon Network was under the leadership of Blockchain security company TRM Labs announced On August 20 to function as the first end-to-end ‘Kill Chain’ for digital asset crime, designed to detect, mark and disrupt suspicious blockchain transactions within minutes.
Founding members behind the initiative include crypto fairs such as Coinbase, Binance, Kraken and Robinhood, payment platforms such as PayPal and Stripe, and among other things on compliance-oriented companies such as Ripple, Anchorage Digital and Blockchain.com.
These members will collaborate with “leading federal law enforcement agencies” to mark suspicious wallet addresses and share information in the network.
According to TRM Labs, Beacon Network marks a turning point for Crypto crime response, so that the approach is moved from insulated, delayed reactions to a system where platforms and law enforcement can work together immediately. The aim of the network is to put stolen funds in their traces, allowing affected platforms to act before the money has reached Fiat conversion points.
Participants hope that the network will play a crucial role in protecting users and rebuilding trust in the crypto ecosystem.
“Safety and security are the fundamental pillars of Crypto, and it is the collective responsibility for those who are committed to the future of our sector to promote its integrity,” Antonio Alvarez, Chief Compliance Officer of Crypto.com was quoted.
Each member contributes by sharing verified intelligence, monitoring marked portfolios and helping the authorities to trace the movement of funds through the blockchain.
How will Beacon Network function?
The infrastructure of Beacon Network is based on automated reports and a growing database with marked wallet addresses. As soon as a researcher or platform identifies suspicious activities and marks an address, the network that is labeled over linked portfolios automatically propagates.
If those funds are sent to a participating exchange, the system will send a direct alert, so that the platform can retain the transaction before funds are withdrawn.
To ensure that the infrastructure is not abused, only users, such as law enforcement partners, established fairs and accredited security researchers, can mark addresses.
TRM Labs said that every flag must be supported by strong evidence and a clear intention to act, because abuse of the system would undermine its integrity.
Beacon Network has already been tested
According to TRM Labs, Beacon Network has already helped to trace millions of dollars in stolen funds.
In one case, researchers were able to mark $ 1.5 million on a multinational scam, which then allowed a participating exchange to freeze the funds. In another case, $ 800,000 were intercepted in suspected swindling positos before bad actors could withdraw.
The network focuses on a wide range of criminal activities, including hacks sponsored by the government, scams and terrorist financing.
An important focus is the dismantling of illegal networks managed by North Korean IT employees and hacking groups, of which TRM Labs says they are responsible for a considerable part of the global crypto -theft.
Billions lost in H1 2025
Crypto crime has risen in recent years, with 2025 that is one of the worst on record. In the first half of the year alone, criminals drove more than $ 2.1 billion in digital assets about 75 incidents. The majority of these losses came from infrastructure attacks, such as private key thefts and front-end exploits.
The Bybit -Hack of $ 1.5 billion in February 2025 accounted for nearly 70% of the total stolen funds of the year. Attributed to North Korean hackers, the infringement in the first month concerned more than 10,000 transactions, to illustrate how quickly stolen funds can be washed.
The Foundation for Beacon was laid a year earlier, when TRM Labs joined Tether and Tron to create the T3 Financial Crime Unit, aimed at following dirt money over the blockchain in real time.
T3 FCU focused on monitoring the USDT activity on the Tron Blockchain and has helped freeze more than $ 100 million in illegal funds.