Beacon Network by TRM Labs Enlists Coinbase, Binance to Stop Crypto Fraud

A new initiative from blockchain intelligence firm TRM Labs is set to transform the fight against cryptocurrency crime. It's called the Beacon Network, which is a real-time crypto crime response system, and was launched to block illicit funds before they can be laundered into fiat currency. Developed in collaboration with law enforcement, major crypto exchanges, and stablecoin issuers, the network aims to enhance coordination across the industry to protect consumers and maintain the integrity of the crypto ecosystem. With a robust lineup of founding members and cutting-edge technology, Beacon Network is positioned as a critical tool in addressing the rising tide of crypto related financial crime.

The Beacon Network boasts a coalition of founding members from both the crypto and traditional financial sectors. Major players such as Coinbase, Binance, PayPal, Robinhood, Stripe, Kraken, Ripple, and Crypto.com, are among the 20 initial participants. Other notable members include Anchorage Digital, Bitfinex, HTX, Poloniex, OKX, 1inch, and ChangeNow. This diverse group reflects the industry-wide commitment to tackling illicit activity, with each member contributing to a shared goal of real-time crime prevention. Leading federal law enforcement agencies globally, alongside security researchers and firms like ZachXBT, Security Alliance (SEAL), zeroShadow, Hypernative, Operation Shamrock, and CryptoForensics Investigators, are also actively involved, strengthening the network’s reach and effectiveness.

How Beacon Network Operates to Stop Illicit Funds

The Beacon Network operates through a streamlined process designed to act swiftly against suspicious transactions. Verified investigators, including crypto exchanges, law enforcement, and security firms, flag wallet addresses linked to fraud, hacks, or other financial crimes within TRM Labs’ system. These flagged addresses are then automatically traced in real time as funds move across blockchains, leveraging advanced analytics to monitor their flow. When flagged funds reach a participating exchange or financial institution, the network triggers an instant alert, enabling platforms to review the risk and, if necessary, freeze deposits before they can be withdrawn. This rapid response mechanism allows for immediate collaboration with law enforcement, ensuring that illicit assets can be recovered before they are cashed out.

The need for such a system is highlighted by the growing scale of crypto crime. According to TRM Labs, more than $47 billion has flowed to fraud-linked addresses since 2023, with hackers stealing over $2.3 billion from the crypto ecosystem in 2025 alone. The Beacon Network addresses this challenge by providing a proactive, industry-wide solution that connects investigators and platforms in real time. Valerie-Leila Jaber, Global Head of Anti-Money Laundering at Coinbase, described it as a groundbreaking early warning system that enables platforms to identify and freeze illicit assets swiftly. Similarly, CJ Rinaldi, Chief Compliance Officer at Kraken, emphasized the network’s ability to facilitate seamless collaboration, allowing stakeholders to act within moments of detecting suspicious activity.

PayPal’s involvement further highlights the initiative’s significance. David Szuchman, Senior Vice President and Global Head of Financial Crimes and Customer Protection at PayPal, expressed pride in joining forces with industry leaders and law enforcement to combat crypto-related crime. The network’s ability to integrate real-time intelligence sharing with actionable responses sets it apart from previous efforts to curb illicit activity in the crypto space. By uniting exchanges, DeFi services, stablecoin issuers, and law enforcement, Beacon Network creates a cohesive framework for addressing financial crime at scale.