Beacon network Unites Crypto Giants to Combat Crime
Leading crypto players and law enforcement have joined forces to launch teh Beacon Network. This real-time system aims to stop illegal crypto activities by freezing suspicious funds quickly.
Launched on August 20, Beacon Network is led by TRM Labs and supported by major crypto exchanges. The goal? To detect, flag, and disrupt illegal transactions almost instantly. this collaboration marks a significant step in fighting crypto crime.
- Founding members include Coinbase, Binance, and PayPal.
- The group also involves federal law enforcement agencies.
- This network allows platforms to act fast before stolen funds reach conversion points.
Antonio Alvarez, Crypto.com’s Chief Compliance officer, emphasized that safety is crucial. He believes the crypto community must work together to protect its users.
How does Beacon Network operate? It uses automated alerts and a database of flagged wallets. When someone spots illegal activity and marks a wallet, the network alerts other linked wallets instantly. This helps freeze funds at exchanges before withdrawal.
To prevent misuse, only trusted users can flag addresses. Misuse could harm the system’s integrity. Despite these safeguards, Beacon Network shows promise. It has helped track millions in stolen funds.
In one instance, $1.5 million from a international scam was flagged. A participating exchange then froze the funds. Similar success occurred in another case involving $800,000.
Crypto crime is a growing issue. In the first half of 2025,criminals stole over $2.1 billion via around 75 incidents.The Febuary 2025 bybit hack was particularly notable, accounting for near 70% of the year’s stolen funds.
Building on previous efforts like the T3 Financial Crime Unit, Beacon Network represents an advanced solution. Its impact could help restore confidence in the crypto ecosystem.
