TRM, Coinbase, and Ripple Launch Beacon Network to Combat Crypto Theft

A coalition of major players in the cryptocurrency industry, alongside law enforcement, security experts, and fintech firms, has established the Beacon Network. This real-time system aims to respond to crypto crime by freezing illicit funds before they can be laundered or withdrawn, marking a significant advancement in the security of digital assets.

Key Takeaways

Beacon Network Formation: A collaboration between TRM Labs, Coinbase, Binance, Kraken, Robinhood, and other major companies to combat crypto theft.
Real-Time Response System: Designed to detect and disrupt suspicious blockchain transactions quickly.
Safeguarding Users: The initiative aims to protect users and restore trust in the crypto space.
Evidence-Based Flagging: Only vetted members can flag suspicious wallets, ensuring the system's integrity.
Significant Impact: The Beacon Network has already identified and helped freeze millions in stolen crypto assets.

TRM, Coinbase, Ripple, launch Beacon Network to curb crypto theft

Main Content

A consortium of significant players in the crypto industry, including law enforcement agencies, security researchers, and fintech companies, has united to create the Beacon Network. This innovative initiative acts as a real-time crypto crime response system, assisting in freezing illicit funds before they can be laundered or withdrawn.

Announced on August 20, the Beacon Network, spearheaded by blockchain security firm TRM Labs, operates as the first complete “kill chain” specifically for digital asset crime. Its mission is to detect, flag, and disrupt suspicious blockchain transactions within a matter of minutes.

The founding members of this initiative include prominent crypto exchanges such as Coinbase, Binance, Kraken, and Robinhood, as well as payment platforms like PayPal and Stripe. Compliance-focused organizations like Ripple, Anchorage Digital, and Blockchain.com also play a crucial role in this collaboration.

These organizations will collaborate with top federal law enforcement agencies to identify suspicious wallet addresses and share information throughout the network. TRM Labs emphasizes that the Beacon Network represents a crucial shift in the response to crypto crime, moving from isolated, delayed reactions to a system where platforms and law enforcement can act swiftly together. The network's core aim is to halt stolen funds immediately, enabling affected platforms to respond before the money reaches points of fiat conversion.

Participants believe that the Beacon Network will be essential in protecting users and restoring confidence in the cryptocurrency ecosystem. Antonio Alvarez, the Chief Compliance Officer of Crypto.com, stated, “Safety and security are the foundational pillars of crypto, and it is the shared responsibility of those committed to the future of our sector to promote its integrity.”

Each member of the network contributes by sharing verified intelligence, monitoring flagged wallets, and assisting authorities in tracing the movement of funds through the blockchain. The infrastructure of the Beacon Network relies on automated alerts and a continuously growing database of flagged wallet addresses. Once suspicious activity is flagged by an investigator or a platform, the network propagates that alert across all linked wallets.

If any flagged funds are sent to a participating exchange, the system triggers an instant alert, allowing the platform to hold the transaction before any funds are withdrawn. To maintain the system's integrity, only vetted users—including law enforcement partners, established exchanges, and accredited security researchers—are permitted to flag addresses. TRM Labs has stated that every flag must be grounded in solid evidence and a clear intention to act, as any misuse of the system could jeopardize its credibility.

According to TRM Labs, the Beacon Network has already played a key role in tracing millions of dollars in stolen funds. In one notable case, investigators flagged $1.5 million associated with a multinational scam, enabling a participating exchange to freeze the funds. Additionally, $800,000 in suspected scam deposits were intercepted before the perpetrators could withdraw them.

The network aims to address various criminal activities, including state-sponsored hacks, scams, and terrorist financing. A major focus is on dismantling illicit operations run by North Korean IT workers and hacking groups, which TRM Labs indicates are responsible for a large share of global crypto theft.

Crypto crime has escalated dramatically in recent years, with 2025 potentially being one of the worst years on record. In the first half of this year alone, criminals have siphoned off over $2.1 billion in digital assets across 75 incidents. Most of these losses stemmed from infrastructure breaches, such as private key thefts and front-end exploits.

The $1.5 billion hack of Bybit in February 2025 represented nearly 70% of the total stolen funds for the year and was attributed to North Korean hackers. This breach involved over 10,000 transactions in its opening month, showcasing the speed at which stolen funds can be laundered.

The groundwork for the Beacon Network was laid a year prior when TRM Labs partnered with Tether and TRON to form the T3 Financial Crime Unit, which is dedicated to tracking dirty money on the blockchain in real time. The T3 FCU has concentrated on monitoring USDT transactions on the TRON blockchain and has successfully helped freeze over $100 million in illicit funds.