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- Beacon Network allows real-time tracking and freezing of illicit crypto funds.
- Verified members include top exchanges, law enforcement, and security researchers.
- Targets major scams, hackers, and terrorist financing while protecting victims.
A coalition of cryptocurrency firms, traditional financial institutions, law enforcement agencies, and security researchers has unveiled the Beacon Network, a groundbreaking initiative designed to combat illicit activity on the blockchain. TRM Labs, which announced the network on Wednesday, describes it as creating “an unprecedented level of industry collaboration to block off-ramps for criminal funds.”
Since 2023, over $47 billion has reportedly been sent to fraud-related crypto addresses, and the Beacon Network aims to reduce this growing problem by enabling verified members to flag suspicious wallets, trace funds in real time, and alert exchanges and services to prevent withdrawals or laundering.
How the Beacon Network Works
Verified participants—including crypto exchanges like Coinbase, Binance, Kraken, and platforms such as Robinhood, PayPal, Anchorage Digital, and Ripple—can trace flagged funds across the blockchain. When illicit assets reach a participating exchange, the network automatically triggers alerts, allowing the funds to be frozen before criminals can cash out.
TRM Labs calls the system the first end-to-end “kill chain” for illicit crypto transactions. Historically, stolen assets often move rapidly, as seen in the $1.5 billion Bybit hack earlier this year, where the funds traveled through over 10,000 transactions in just one month. The Beacon Network’s real-time tracking ensures law enforcement and financial platforms can act in minutes, not days.
🚨 Introducing Beacon Network: The first real-time crypto crime response network. Exchanges, issuers, and law enforcement can now trace funds instantly — and act before criminals cash out.
— TRM Labs (@trmlabs) August 20, 2025
Learn more: https://t.co/ZtslbTyOfM#BeaconNetwork #TRMLabs pic.twitter.com/IX7MPRntF0
Early Success Stories and Key Targets
The Beacon Network is already operational, with several documented successes. In one instance, law enforcement traced and blacklisted $1.5 million linked to a global scam. In another, investigators flagged $800,000 in scam-related deposits at a major exchange, ensuring the funds were frozen before being laundered.
Also Read: AltcoinBeacon Emerges as the Savvy Investor’s Top Source for the Latest Altcoin Insights
The network focuses on major threats, including North Korean cybercrime groups, hacker collectives, scammers, and potential terrorist financing. By centralizing alerts and sharing critical data, the Beacon Network also prioritizes recovering stolen funds for victims and expanding membership to other companies committed to fighting crypto crime.
The Beacon Network marks a pivotal shift in cryptocurrency security, enabling collaboration between law enforcement, crypto platforms, and security researchers. By enabling real-time tracking and intervention, the network is set to become a cornerstone in the global fight against crypto-related financial crime.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses
I’m a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.
