Crypto Giants Unite to Launch Beacon Network Against Fraud

Global crypto giants, including Binance, Coinbase, PayPal, and Kraken, have joined forces with law enforcement agencies to launch Beacon Network, a new real-time crime response system aimed at combating the growing wave of fraud in the digital asset space.

The initiative, unveiled by blockchain intelligence firm TRM Labs, comes against the backdrop of alarming figures showing that more than $47 billion worth of cryptocurrency has been sent to fraud-related addresses since 2023, with 2025 already seeing over $2.3 billion stolen through hacks.

Beacon Network is designed to intercept illicit funds before they leave the blockchain, a major shift from traditional approaches where criminals often cash out before law enforcement can act.

The system works by flagging addresses linked to scams, hacks, and other financial crimes, instantly alerting participating exchanges when tagged funds arrive. This enables platforms to freeze deposits and stop withdrawals in real time, cutting off off-ramps for criminals.

TRM Labs said founding members of the network include major exchanges and payment firms such as Binance, Coinbase, Kraken, Ripple, Robinhood, Blockchain.com, Crypto.com, Stripe, OKX, and PayPal.

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• Federal law enforcement agencies around the world are also plugged into the network, while blockchain sleuths like ZachXBT and research firms including Security Alliance and Hypernative are providing continuous monitoring.
• Executives across the industry stressed that real-time collaboration was critical to safeguarding both investors and the financial system.

Theres no program like Beacon Network. Its a true early warning system that helps us identify and freeze illicit assets so law enforcement can recover them, said Coinbases Global Head of Anti-Money Laundering, Valerie-Leila Jaber.

Binance Chief Compliance Officer, Noah Perlman, added:

We are looking forward to strengthening cross-collaboration through Beacon Network and proactively addressing risks and issues, allowing us to build more trust and security, which are the cornerstones of broader crypto adoption. 

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• According to TRM Lab, the urgency of such collaboration was underscored by the $1.5 billion Bybit hack earlier this year, in which stolen funds were funneled through over 10,000 transactions within just one month.
• It noted that incidents like that demonstrate the short window exchanges have to act, often measured in minutes, making real-time coordination essential.

This isnt about adding another layer of compliance. Its about unlocking the full potential of crypto: real-time transparency, automated detection, and rapid response, said CEO and co-founder of TRM Labs, Esteban Casta�o.

What you should know 

According to a report by blockchain analytics firm Chainalysis, crypto hacking incidents surged in 2024, with total funds stolen increasing by 21.07% year-over-year to $2.2 billion.

• Earlier this year, Crypto exchange Bybit revealed that it fell victim to a sophisticated attack, resulting in the theft of Ethereum (ETH) valued at $1.4 billion from one of its offline wallets.
• The breach, described as the largest crypto heist in history, sent shockwaves through the digital asset industry.
• That single incident surpassed previous major crypto breaches, including the $624 million Ronin Network hack and the $611 million Poly Network exploit, according to data from Rekt, a platform tracking Web3 and crypto-related breaches.