Crypto Firms Unite to Combat Illicit Activity with Beacon Network
Major players in the cryptocurrency industry are collaborating with TRM Labs to launch the Beacon Network, an initiative designed to combat crypto crimes. This collective effort arrives as the U.S. government intensifies its focus on regulating digital assets and curbing illicit financial activities.
Beacon Network Aims to Thwart Crypto Crime
TRM Labs announced the formation of the Beacon Network, describing it as the first real-time crypto crime response network. The blockchain intelligence platform emphasized that the core objective is to prevent illicit funds from being moved out of the blockchain ecosystem.
Key Participants and Their Roles
- Leading Exchanges: Coinbase, Crypto.com, OKX, Kraken, and Robinhood are among the crypto exchanges participating.
- Payment Processors: PayPal and Stripe are also onboard.
- Custodial Services: Anchorage Digital represents the custodial sector.
- Security Researchers: ZachXBT, Security Alliance (SEAL), and zeroShadow will provide continuous monitoring to identify and track potential threats.
TRM Labs highlighted that the Beacon Network fosters "an unprecedented level of industry collaboration to block off-ramps for criminal funds."
Collaboration with Law Enforcement
The Beacon Network will collaborate with federal law enforcement agencies worldwide. These agencies will contribute by flagging addresses linked to significant threats, triggering alerts to preemptively halt malicious actors from moving funds off-chain.
Urgency Driven by Rising Crypto Crime
TRM Labs emphasized the urgency of this initiative, noting that since 2023, at least $47 billion in cryptocurrencies has been sent to addresses associated with fraud. This figure is likely understated, as many fraud victims do not report incidents.
The year 2025 has seen a surge in hacking incidents, with over $2.3 billion stolen from the crypto ecosystem. This includes the $1.5 billion Bybit hack, the largest crypto exchange hack to date. The movement of funds from the Bybit hack involved 10,000 transactions within the first month, highlighting the critical need for rapid detection and coordinated response across the crypto ecosystem. The recent CoinDCX $44 million hack further underscores this need.
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