San Francisco-based blockchain analytics firm TRM Labs today unveiled the Beacon Network, a pioneering initiative aimed at curbing cryptocurrency-related financial crime.
The Beacon Network, developed by TRM Labs, represents a significant step toward addressing the growing challenge of cryptocurrency-related financial crime. Founding members include prominent exchanges and industry players such as Binance, Bitfinex, Coinbase, Crypto.com, HTX, Kraken, PayPal, Poloniex, Ripple, and Zodia Custody. These industry leaders, alongside vetted law enforcement agencies and security researchers, aim to disrupt illicit activities by sharing real-time intelligence on suspicious blockchain addresses.
The network operates by enabling verified investigators to flag addresses linked to financial crimes, such as scams, ransomware, terrorist financing, and child sexual abuse material (CSAM)-related transactions. Once flagged, these addresses are traced across the blockchain, and participating exchanges receive immediate alerts when illicit funds interact with their platforms. This allows for rapid risk assessment and coordinated action, such as freezing funds before they can be withdrawn.
🚨 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
How It Works
The Beacon Network’s framework is built around four core functions: flagging suspicious activity, tracing funds in real time, issuing alerts to participating entities, and enabling rapid response to prevent withdrawals. For instance, when a law enforcement agency identifies a wallet linked to a scam, the network propagates this information to exchanges, which can then freeze the funds and coordinate with authorities for recovery.
Membership in the Beacon Network is free for verified exchanges and crypto service providers, with tiered access levels — Affiliate, Partner, and DeFi — offering varying degrees of intelligence-sharing capabilities. The Affiliate tier provides essential alerts, while the Partner tier grants access to comprehensive data, including historical records of flagged addresses. DeFi platforms can leverage the network to block high-risk wallets in real time, enhancing their defenses against illicit activities.
Industry and Law Enforcement Backing
The initiative has garnered strong support from both the crypto industry and law enforcement. Noah Perlman, Chief Compliance Officer at Binance, emphasized the network’s role in fostering trust:
“Blockchain has proven to be one of the most powerful tools to fight financial crime, and Beacon Network further enables private and public sector collaboration to ensure that we continue to lower crime on the blockchain.”
Similarly, Valerie-Leila Jaber, Coinbase’s Global Head of Anti-Money Laundering, described the network as “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,” said Jaber.
CJ Rinaldi, Chief Compliance Officer at Kraken, highlighted the speed of criminal activity in crypto:
“When criminals move money, they do it fast—often using thousands of transactions across multiple wallets to obscure the trail. With the right real-time intelligence, we can follow the money and take action before it’s gone.”
Addressing a Growing Threat
TRM Labs estimates that at least $47 billion in cryptocurrency has been sent to fraud-related addresses since 2023, highlighting the scale of the challenge. The network specifically targets high-priority threats, including North Korean cyberattacks, ransomware operations, and terrorist financing. By fostering collaboration across centralized exchanges, DeFi platforms, stablecoin issuers, and law enforcement, the Beacon Network aims to close gaps exploited by bad actors.
The initiative also aligns with the crypto industry’s push for greater regulatory compliance and mainstream adoption. By reducing the risk of illicit funds flowing through their platforms, participating firms can strengthen their compliance frameworks and build trust with users and regulators alike.
Early Successes
The Beacon Network has already demonstrated tangible results. In one case, a law enforcement agency used the network to trace funds from a global scam, enabling exchanges to freeze $1.5 million before it could be withdrawn. In another instance, $800,000 in scam-related deposits was identified and flagged for recovery. DeFi platforms using TRM’s API have also blocked 100% of attempts from flagged scam addresses, while a global exchange thwarted an impersonation attack by blocklisting scammer wallets and linked devices.
Future Outlook
Looking ahead, TRM Labs envisions the Beacon Network as the foundation for a broader, interoperable intelligence-sharing ecosystem. The goal is to create a “network of networks” built on shared standards, enabling seamless collaboration across the crypto industry and law enforcement worldwide. As more platforms join and the network expands, its ability to disrupt illicit activity in real time is expected to grow, potentially setting a new standard for financial crime prevention in the digital asset space.
The Beacon Network’s success will depend on continued participation from industry players and the integration of advanced analytics to stay ahead of evolving criminal tactics. For now, its early achievements signal a promising step toward a safer and more transparent crypto ecosystem.