In an industry-first, TRM Labs has launched Beacon Network, an intelligence-sharing platform designed to prevent illicit funds from leaving the blockchain and build a real-time crypto crime response network.
The initiative was announced on August 20 on the heels of new TRM Labs data that showed that at least $47bn in cryptocurrency has been sent to fraud-related addresses since 2023.
The idea behind Beacon Network is to bring together different actors in the cryptocurrency and cybersecurity ecosystem to share intelligence in real-time in order to prevent major crypto heists like the $1.5bn Bybit hack.
Specifically, Beacon Network focuses on several high-impact areas:
- North Korean (DPRK) IT worker and hack fund disruption
- Ransomware payment interdiction
- Terrorism financing prevention
- Recovering scam victim funds
- Child sexual abuse material-related financial flows
The initiative was developed in collaboration with law enforcement across dozens of countries, leading financial platforms, cryptocurrency exchanges and stablecoin issuers, and a few crypto-security researchers and research firms.
Read more: Bybit Heist Fuels Record Crypto-Theft Surge, Says CertiK
Some of the top crypto exchanges joining Beacon Network include Binance, Bitfinex, Coinbase, Crypto.com, HTX, OKX and Kraken alongside other crypto-related companies, such as Ripple, Zodia Custody and Blockchain.com.
Some established fintech companies have also joined, including PayPal, Robinhood and Stripe, as well as some of the most active researchers in the world of crypto crimes – including ZachXBT, Security Alliance (SEAL), zeroShadow, Hypernative, Operation Shamrock and CryptoForensics Investigators.
How the Beacon Network Platform Works
According to TRM Labs’ announcement, Beacon Network is pursuing four objectives:
- Flagging and propagation: Verified investigators (which includes some members of vetted law enforcement agencies, TRM Labs’ partner members and vetted security researchers) flag addresses linked to financial crime and 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
Vetted law enforcement agencies are located in Australia, Canada, Germany, Ireland, the Netherlands, Portugal, Spain, South Korea, Switzerland, the UK, the US and more.
According to TRM Labs, the difference between Beacon Network and similar initiatives lies in the real-time response.
“In real time, Beacon Network automatically traces those funds across the blockchain and propagates that intelligence to connected services,” the announcement reads.
“When flagged funds hit a participating platform, the system immediately sends an alert — all without human intervention. This automated tracing and real-time notification means that illicit funds can be identified, tracked, and acted on before they can be withdrawn or laundered.”
Proving That Crypto Can Be the “Most Secure Financial System”
Esteban Castaño, CEO and co-founder of TRM Labs, assured that Beacon Network’s aim is not to add another layer of compliance.
“It’s about unlocking the full potential of crypto: real-time transparency, automated detection, and rapid response. Beacon Network proves that with the right infrastructure, crypto can be the most secure financial system in the world,” he added.
Valerie-Leila Jaber, global head of anti-money laundering (AML) at Coinbase, was equally hyperbolic. “There’s no program like Beacon Network,” she said.
“It’s a true early warning system that helps us identify and freeze illicit assets so law enforcement can recover them. That’s critical for protecting victims and safeguarding the broader ecosystem. Access to real-time intelligence is a game changer.”
Marc Fungard, head of financial crime, compliance and risk oversight at Stripe, noted that Beacon Network helps close the gap in traditional financial oversight.
“Financial crime doesn’t respect the line between traditional finance and crypto, so risk management must cover both on-chain and off-chain activity. We’re eager to contribute to Beacon Network’s real-time, collaborative model, which turns persistent, shared signals into swift, coordinated action with law enforcement – helping protect users and strengthen the wider financial system,” he said.
TRM Labs said Beacon Network encourages other actors to join, especially law enforcement agencies, stablecoin issuers, crypto exchanges, decentralized finance (DeFi) platforms, security researchers and “other trusted members of the cryptocurrency ecosystem.”