TRM Labs Launches Beacon Network for Crypto Crime Prevention
TRM Labs Unveils Beacon Network to Combat Crypto Crime
TRM Labs has launched the Beacon Network, a new initiative designed to provide a real-time response to crypto crime. The network aims to prevent the laundering of illicit funds into fiat currency by connecting investigators and platforms in real time.
Key Takeaways
- Beacon Network is designed to block illicit funds in real time.
- Founding members include major players like Coinbase, Binance, Ripple, Kraken, PayPal, Stripe, Robinhood, OKX, and Blockchain.com.
How Beacon Network Works
Beacon Network operates through collaboration between law enforcement, exchanges, and stablecoin issuers. Here's how it works:
- Verified investigators flag wallets associated with fraud or hacks.
- Beacon automatically propagates these risk labels across linked addresses.
- Participating exchanges and issuers receive instant alerts when flagged funds are detected.
- Platforms can then review and freeze deposits before they are cashed out.
According to TRM Labs, over $47 billion has flowed to fraud-linked addresses since 2023, and hackers have stolen over $2.3 billion from the crypto ecosystem this year alone.
Industry Support
The Beacon Network has garnered support from various industry leaders and law enforcement agencies.
Valerie-Leila Jaber, Global Head of Anti-Money Laundering at Coinbase, stated, "There’s no program like Beacon Network. It’s a true early warning system that helps us identify and freeze illicit assets so law enforcement can recover them.”
CJ Rinaldi, Chief Compliance Officer at Kraken, added, “Protecting consumers and safeguarding the integrity of the crypto ecosystem requires seamless collaboration across the industry and law enforcement. Beacon Network’s real-time intelligence allows us to act within moments.”
David Szuchman, Senior Vice President, Global Head of Financial Crimes and Customer Protection at PayPal, noted, “PayPal is proud to be a founding member of Beacon Network, joining forces with industry leaders and law enforcement to combat crypto-related financial crime in real time.”
Leading federal law enforcement agencies globally are actively contributing to the network, along with security researchers and firms including ZachXBT, Security Alliance (SEAL), zeroShadow, Hypernative, Operation Shamrock, and CryptoForensics Investigators.