TRM Labs announced the launch of Beacon Network, the real-time crypto crime response network.
Built in collaboration with law enforcement, exchanges, and stablecoin issuers, Beacon Network is designed to “prevent illicit funds from leaving the blockchain.”
Founding members “include Coinbase, Binance, PayPal, Robinhood, Stripe, Kraken, Ripple, Crypto.com, Zodia Custody, Blockchain.com, Anchorage Digital, Bitfinex, HTX, Poloniex, OKX, LFJ, 1inch, Rhino.fi, Coinspot, and ChangeNow, among others, creating an unprecedented level of industry collaboration to block off-ramps for criminal funds.”
Federal law enforcement agencies globally are “actively contributing to the network, flagging addresses linked to critical threats and triggering alerts that help stop illicit actors before they can cash out.”
Security researchers and firms — including “ZachXBT, Security Alliance (SEAL), zeroShadow, Hypernative, Operation Shamrock, and CryptoForensics Investigators — are providing continuous monitoring to identify and track threats.”
According to data from TRM Labs, since 2023, “at least USD 47 billion in cryptocurrency has been sent to fraud-related addresses.”
And that’s likely only part of the picture – most fraud victims don’t disclose that they’ve fallen “for a scam due to shame, lack of awareness, or unclear reporting pathways, so the true number is likely far higher.”
Additionally, 2025 has “been a record-setting year for hacks with over USD 2.3 billion stolen from the cryptocurrency ecosystem.”
This persistent wave “of scams, fraud, hacks, and other illicit activity is draining billions from everyday people each year.”
And in many cases, stolen funds are quickly “moved through exchanges or off-ramped into fiat before law enforcement can intervene. ”
Funds from the USD 1.5 billion Bybit hack earlier this year moved through over “10,000 transactions in the first month after the attack, triggering an urgent need for faster detection, response, and coordination across the crypto ecosystem.”
CJ Rinaldi, Chief Compliance Officer at Kraken said:
“Protecting consumers and safeguarding the integrity of the crypto ecosystem requires seamless collaboration across industry and law enforcement. Beacon Network’s real‑time intelligence allows us to act within moments, reinforcing Kraken’s commitment to a safe and trusted marketplace for digital assets. We’re proud to be a member and look forward to working closely with our peers to stay one step ahead of illicit actors.”
Until now, law enforcement and cryptocurrency platforms “have operated in silos, reacting only after illicit funds have disappeared.”
The window for interdiction is often measured “in minutes, not days. With Beacon Network, that changes.”
Here’s how it works:
- Flagging and propagation: Verified investigators flag addresses linked to financial crime. Beacon Network automatically propagates those labels across related wallets.
- Real-time alerts: When tagged funds arrive at a participating exchange or issuer, Beacon Network triggers an instant alert
- Rapid response: Crypto platforms can proactively review and hold flagged deposits before withdrawal, stopping illicit cash-outs in their tracks
- Accessible by design: Affiliate membership is free for verified exchanges and law enforcement partners
New members continue to join the effort, “expanding Beacon Network’s global reach and real-time coverage.”
According to a blog post by TRM Labs, here is why exchanges should join Beacon Network:
- Stop illicit funds before they exit the crypto ecosystem
- Safeguard your platform, customers, and reputation
- Demonstrate leadership in proactive financial crime prevention
- Access trusted and actionable cross-industry intelligence at no cost
