Beacon Network: The New Global Alliance Against Crypto Fraud

A group of crypto companies, financial institutions, as well as regulatory authorities, has launched the Beacon Network. This network allows quickly detecting and freezing stolen funds on the blockchain, bringing together actors like Coinbase, Binance, Kraken, PayPal, and Ripple, alongside security researchers and law enforcement.

A unique alliance to counter crypto fraud

Since 2023, over 47 billion dollars worth of crypto has flowed to addresses linked to fraud and scams, according to TRM Labs. To respond to this growing threat, a collective bringing together major players from crypto and traditional finance launched the Beacon Network, a collaborative system dedicated to identifying and freezing illicit funds.

The founding members include Coinbase, Binance, Kraken, Robinhood, PayPal, Anchorage Digital, and Ripple. Alongside them are security researchers such as ZachXBT and the Security Alliance (SEAL).

Authorities from several countries also participate, thereby strengthening the system’s effectiveness. The stated goal is to prevent criminals from converting or laundering their gains by exploiting gaps between platforms.

The network allows verified users to report suspicious addresses in real time. As soon as the concerned crypto funds reach a connected service, an alert is sent to block transactions before they disappear.

From slow tracking to a real-time “kill chain”

Traditionally, investigations into stolen crypto funds faced a major obstacle, especially the speed of transfers. After the 1.5 billion dollar Bybit hack, the cryptos were moved through over 10,000 transactions in a few weeks, making recovery almost impossible.

The Beacon Network changes the game. TRM Labs describes it as a comprehensive “kill chain” applied to digital assets. It integrates detection, tracing, and freezing within minutes instead of days. This approach significantly reduces criminals’ ability to disperse or convert their holdings.

Only approved investigators and partners can report an illicit address. Also, each report involves clear responsibility and must be based on solid evidence. This filter ensures the system’s reliability and prevents abuse.

First results and fight priorities

The Beacon Network is not just theoretical. It has already enabled several concrete actions. For example, in one case, 1.5 million dollars from an international fraud were located and blocked during a withdrawal attempt. In another case, fraudulent deposits amounting to 800,000 dollars were identified and frozen in time.

TRM Labs also emphasizes that recruiting new partners remains essential to strengthening the system’s effectiveness.

With the expansion of this network, criminals have fewer and fewer options to launder their gains. For crypto actors, this initiative marks a decisive step towards a safer and more transparent ecosystem.

The network’s priorities first include tracking funds linked to North Korean hackers who set a record year in crypto theft in 2024. It then includes combating terrorism financing and protecting victims of large-scale scams.