Introduction to Beacon Network: A Revolutionary Crypto Crime Reaction System
A consortium of the heavyweights of the crypto industry, law enforcement authorities, security researchers, and fintech companies has brought together the Beacon Network, a real-time criminal reaction system that can help to freeze illegal means before being washed or withdrawn. 
The Beacon Network is designed to mark and freeze stolen crypto funds before they hit fiat ramps, thereby preventing the laundering of illicit funds. This initiative is led by TRM Labs, a blockchain security company, and has the support of prominent crypto exchanges, payment platforms, and compliance-focused companies.
Key Features and Members of the Beacon Network
The founding members of the Beacon Network include crypto exchanges such as Coinbase, Binance, and Robinhood, payment platforms like PayPal and Stripe, as well as compliance-focused companies like Ripple, Anchorage Digital, and Blockchain.com. These members will work together with leading federal law enforcement agencies to mark suspicious item addresses and exchange information throughout the network.
According to TRM Labs, the Beacon Network marks a turning point for crypto crime reaction, changing the approach from isolated, delayed reactions to a system where platforms and law enforcement authorities can immediately work together to stop stolen funds in their tracks. The aim of the network is to protect users and rebuild trust in the crypto ecosystem.
How the Beacon Network Works
The Beacon Network’s infrastructure is based on automated warnings and a growing database of marked items. As soon as an investigator or platform identifies suspicious activities and marks an address, the network automatically spreads to linked wallets. If these funds are sent to a participating exchange, the system sends an immediate warning, allowing the platform to hold the transaction before the funds are withdrawn.
To ensure the infrastructure is not abused, only authorized users, such as law enforcement authorities, established exchanges, and accredited security researchers, can mark addresses. TRM Labs emphasizes that every flag must be backed by strong evidence and a clear intention, as the abuse of the system would undermine its integrity.
Beacon Network’s Impact and Testing
According to TRM Labs, the Beacon Network has already contributed to pursuing stolen assets worth millions of dollars. In one case, investigators were able to identify $1.5 million tied to a multinational fraud, which then enabled a participating exchange to freeze the funds. In another case, $800,000 was intercepted from alleged fraudsters before they could withdraw the funds.
The network aims to combat a wide range of criminal activities, including state-sponsored hacks, fraud, and terrorism financing. One primary focus is on reducing illegal networks operated by North Korean IT workers and hacking groups, who, according to TRM Labs, are responsible for a significant portion of global crypto theft.
Crypto Crime in 2025: A Growing Concern
Crypto crime has increased in recent years, with 2025 being one of the worst on record. In the first half of the year alone, criminals stole over $2.1 billion from digital assets in 75 incidents. The majority of these losses came from infrastructure attacks, such as private key theft and front-end exploits.
The $1.5 billion Bit hack in February 2025 accounted for almost 70% of the total stolen funds for the year. The transactions of North Korean hackers had over 10,000 transactions in the first month, illustrating how quickly stolen funds can be laundered.
For more information on the Beacon Network and its efforts to curb crypto theft, visit https://crypto.news/trm-coinbase-ripple-launch-beacon-network-to-curb-crypto-theft/
