TRM Labs Launches Beacon Network, the First Real-time Crypto Crime Response Network

San Francisco, CA — August 20, 2025 — Today, TRM Labs announced the launch of Beacon Network, the first real-time crypto crime response network. Built in collaboration with law enforcement, exchanges, and stablecoin issuers, Beacon Network is designed to prevent illicit funds from leaving the blockchain.

Founding members include Coinbase, Binance, PayPal, Kraken, Ripple, Crypto.com, Zodia Custody, HTX, Poloniex, and Bitfinex, among others, creating an unprecedented level of industry collaboration to block off-ramps for criminal funds. Leading federal law enforcement agencies globally are actively contributing to the network, flagging addresses linked to critical threats and triggering alerts that help stop illicit actors before they can cash out.

According to new data from TRM Labs, since 2023, at least USD 47 billion in cryptocurrency has been sent to fraud-related addresses. And that’s likely only part of the picture – most fraud victims don’t disclose that they’ve fallen for a scam due to shame, lack of awareness, or unclear reporting pathways, so the true number is likely far higher. Additionally, 2025 has been a record-setting year for hacks with over USD 2.3 billion stolen from the cryptocurrency ecosystem.

This persistent wave of scams, fraud, hacks, and other illicit activity is draining billions from everyday people each year. And in many cases, stolen funds are quickly moved through exchanges or off-ramped into fiat before law enforcement can intervene.

Funds from the USD 1.5 billion Bybit hack earlier this year moved through over 10,000 transactions in the first month after the attack, triggering an urgent need for faster detection, response, and coordination across the crypto ecosystem.

Beacon Network enables a shift from reaction to prevention

“Protecting consumers and safeguarding the integrity of the crypto ecosystem requires seamless collaboration across industry and law enforcement. Beacon Network’s real‑time intelligence allows us to act within moments, reinforcing Kraken’s commitment to a safe and trusted marketplace for digital assets,” said CJ Rinaldi, Chief Compliance Officer at Kraken. “We’re proud to be a member and look forward to working closely with our peers to stay one step ahead of illicit actors.”

Until now, law enforcement and cryptocurrency platforms have operated in silos, reacting only after illicit funds have disappeared. The window for interdiction is often measured in minutes, not days. With Beacon Network, that changes.

Here’s how it works:

• Flagging and propagation: Verified investigators flag addresses linked to financial crime. 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

“There’s no program like Beacon Network,” said Valerie-Leila Jaber, Global Head of Anti-Money Laundering at Coinbase. “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.”

“This isn’t about adding another layer of compliance,” said Esteban Castaño, CEO and co-founder of TRM Labs. “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.”

“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,” said Binance Chief Compliance Officer Noah Perlman. “We are looking forward to strengthening cross-collaboration through Beacon Network and proactively addressing risks and issues, allowing us to build more trust and security, which are the cornerstones of broader crypto adoption.”

From siloed responses to shared infrastructure

“As blockchain adoption accelerates across the mainstream financial system, maintaining trust and safety is essential to unlocking institutional adoption. Beacon Network represents a new chapter, defined by real-time intelligence, proactive risk management, and cross-sector collaboration. At Ripple, we’re proud to be a founding member,” said Andrew Rosenberg, Head of Financial Crimes Compliance at Ripple.

“Safety and security are the foundational pillars of crypto, and it is the collective responsibility for those committed to the future of our sector to promote its integrity,” said Antonio Alvarez, Chief Compliance Officer of Crypto.com. “We are proud to join TRM Labs and Beacon Network in lending our assets and expertise to this comprehensive enforcement network.”

“We’re proud to join Beacon Network. This kind of public-private partnership is exactly what the industry needs to stay ahead of financial crime and represents a new standard for cooperation between crypto firms and law enforcement,” said Sophie Bowler, Chief Risk and Compliance Officer at Zodia Custody. “At Zodia Custody, compliance and risk management are in our DNA, and we believe blockchain’s transparency is a powerful tool for smarter, faster financial crime prevention. Initiatives like Beacon Network build on that potential and are critical to driving trust, accountability, and responsible growth across the digital asset ecosystem.”

“As the crypto industry continues to evolve at a rapid pace, threats such as hacking and money laundering have become increasingly sophisticated, intelligent, complex, and fast-moving. It is no longer feasible for any single team to fight these crimes effectively — we must unite as an industry to build coordinated defenses and responses, and Beacon Network helps us do just that,” said Heisen Guo, Chief Security Officer at HTX. “HTX is grateful to TRM Labs for spearheading this effort, and we look forward to working side by side with partners worldwide to forge an ‘iron wall’ for the crypto sector, and to safeguard the security and bright future of the industry.”

“Attacks on crypto are not merely technology issues — they represent complex challenges at the intersection of geopolitics, cybersecurity, and the stability of the global financial system. Addressing these threats requires closer international cooperation, the establishment of cross-border information-sharing mechanisms, and the adoption of stronger cryptocurrency regulatory policies,” said Albert Nan, Chief Security Officer at Poloniex. “Beacon Network is an important step in building a global security shield for digital assets, and Poloniex looks forward to fully supporting and assisting TRM’s efforts to strengthen allied collaboration.”

New members continue to join the effort, expanding Beacon Network’s global reach and real-time coverage. Why exchanges should join Beacon Network:

• Stop illicit funds before they exit the crypto ecosystem
• Safeguard your platform, customers, and reputation
• Demonstrate leadership in proactive financial crime prevention
• Access trusted and actionable cross-industry intelligence at no cost

To learn more about Beacon Network and join, visit www.trmlabs.com/beacon-network.