With the recent launch of the Beacon Network, a new era begins in the fight against cyber fraud in the cryptocurrency space. This initiative brings together efforts from major crypto companies, financial institutions, and law enforcement to identify and freeze illicit assets.
A Unique Alliance to Counter Crypto Fraud
According to TRM Labs, over $47 billion worth of cryptocurrencies has flowed to addresses linked to fraud since 2023. In response to this threat, the Beacon Network has been launched—a collaborative system focused on identifying and freezing illicit funds. Founding members include Coinbase, Binance, Kraken, Robinhood, PayPal, Anchorage Digital, and Ripple. The system also involves security experts and authorities from several countries, enhancing its effectiveness.
From Slow Tracking to Real-Time
Traditionally, investigations into stolen funds faced challenges due to the speed of transfers. After the Bybit hack, resulting in $1.5 billion stolen, the cryptocurrencies were moved through more than 10,000 transactions, making recovery nearly impossible. The Beacon Network changes the game: it is described as a comprehensive 'kill chain' that integrates detection, tracing, and freezing within minutes.
First Results and Fight Priorities
The Beacon Network has already demonstrated its effectiveness: in one instance, it blocked $1.5 million linked to international fraud, and in another, it identified and froze $800,000 in fraudulent deposits. TRM Labs emphasizes that recruiting new partners remains essential for strengthening the system. Current priorities include tracking funds linked to North Korean hackers and combating terrorism financing while protecting victims of large-scale scams.
The launch of the Beacon Network marks an important step toward creating a safer and more transparent cryptocurrency ecosystem, which should significantly reduce opportunities for laundering illicit funds.
