The network, announced Wednesday by blockchain intelligence company TRM Labs, is being described as the industry’s first “end-to-end kill chain for illicit crypto assets,” moving from detection to action in minutes rather than 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.
Learn more: https://t.co/ZtslbTyOfM#BeaconNetwork #TRMLabs pic.twitter.com/IX7MPRntF0
— TRM Labs (@trmlabs) August 20, 2025
$47 Billion Sent to Fraud Addresses Since 2023
According to TRM Labs, more than $47 billion worth of crypto has been sent to fraud-related addresses since 2023, though the true figure is likely higher. Criminals rapidly move stolen funds through multiple wallets, often outrunning traditional response times.
The Beacon Network aims to close that gap by enabling verified members to flag suspicious wallet addresses, trace funds across chains, and share alerts directly with connected services and global law enforcement. When flagged funds hit a participating exchange or service, an automatic alert is sent to identify, track, and freeze assets before withdrawal or laundering.
Who Is Behind the Beacon Network?
Founding members include major crypto exchanges Coinbase, Binance, and Kraken; trading platform Robinhood; payments giant PayPal; digital asset firm Anchorage Digital; Ripple; and notable security researchers such as ZachXBT and the Security Alliance (SEAL). TRM Labs says federal law enforcement agencies worldwide are actively contributing by flagging addresses tied to critical threats.
Real-Time Action Against Hackers and Scammers
The design follows lessons from rapid laundering events, such as the $1.5 billion Bybit hack earlier this year, where stolen funds moved through over 10,000 transactions in the first month. TRM Labs notes the new network breaks down silos so platforms and law enforcement can intervene within the crucial minutes-long window.
TRM Labs reports the Beacon Network is already in use. In one case, investigators traced $1.5 million linked to a global scam and blacklisted the address so funds could be frozen at an exchange. In another, $800,000 in scam-related deposits at a major exchange was flagged and frozen before withdrawal.
Strict Safeguards to Prevent Misuse
Only verified users—law enforcement, vetted partners, and security researchers—can flag illicit addresses. TRM Labs says flags require high confidence and intent to act, and that “misuse or abuse of this system will not be tolerated.”
Targeting Major Threats
While applicable to all illicit funds, the network will prioritize threats such as North Korean-linked IT worker scams, hacker groups, terrorist financing, and coordinated fraud rings. Expanding membership to additional companies is also a stated priority to widen coverage and accelerate interdictions.
