Beacon Network May Help Exchanges and Law Enforcement Trace Bitcoin and Other Crypto Funds in Real Time

• Real-time alerts to exchanges and law enforcement

• Verified members flag illicit wallet addresses and share trace data across the network

• TRM Labs reports at least $47 billion sent to fraud-related addresses since 2023

Beacon Network: real-time crypto crime response network that traces and freezes illicit funds on-chain. Read the latest on how exchanges and law enforcement stop scams.

What is the Beacon Network?

Beacon Network is a cross‑sector crypto crime response network that enables verified participants to flag suspicious wallet addresses, trace funds across blockchains, and trigger automated alerts so exchanges and law enforcement can freeze illicit assets before they are cashed out. It combines industry signals, threat intelligence, and rapid action.

How does the Beacon Network stop illicit funds?

The Beacon Network stops illicit funds by letting verified users flag suspect addresses, propagating those flags to connected services, and sending automated alerts when flagged funds reach a participating exchange or custodial service. This reduces interdiction windows from days to minutes and helps freeze or block withdrawals quickly.

The Beacon Network is an “end-to-end kill chain for illicit crypto assets, moving from detection to action in minutes rather than days,” TRM Labs said.

A collective of crypto and traditional finance firms, law enforcement and security researchers has formed a new crypto crime response network — called the Beacon Network — to identify and freeze illicit funds on the blockchain.

TRM Labs announced the Beacon Network and said it creates “an unprecedented level of industry collaboration to block off‑ramps for criminal funds.”

TRM Labs’ new data shows at least $47 billion has been sent to fraud-related addresses since 2023, a figure that is likely conservative given fragmented reporting.

Under the Beacon Network, verified members can flag wallet addresses suspected of financial crime, trace funds across multiple chains, and share actionable intelligence with connected services and law enforcement agencies.

When flagged funds hit an exchange or other participating service, an alert is sent automatically to help identify, track, and freeze those funds before they are withdrawn or laundered.

Founding members of the cross‑sector network include major exchanges and platforms, trading services, payment firms, custody providers, and independent security researchers and teams.

“Leading federal law enforcement agencies globally are actively contributing to the network, flagging addresses linked to critical threats and triggering alerts that help stop illicit actors before they can cash out,” TRM Labs said.

🚨 Introducing Beacon Network: The first real-time crypto crime response network. Exchanges, issuers, and law enforcement can now trace funds instantly — and act before criminals cash out. #BeaconNetwork #TRMLabs pic.twitter.com/IX7MPRntF0 — TRM Labs (@trmlabs) August 20, 2025

Why is real‑time response important?

Stolen funds often move through many transactions in hours or minutes, making recovery difficult. TRM Labs pointed to an incident where $1.5 billion was moved through over 10,000 transactions in the first month after a major hack. Real‑time alerts narrow the window for interdiction and improve recovery rates.

“Until now, law enforcement and cryptocurrency platforms have operated in silos, reacting only after illicit funds have disappeared. The window for interdiction is often measured in minutes, not days. With Beacon Network, that changes,” TRM Labs said.

How is access and verification managed?

Only verified users — including law enforcement agencies, vetted corporate partners, and accredited security researchers — can flag addresses. Each flag is expected to be high‑confidence and actionable. TRM Labs emphasized that flags carry significant responsibility and that misuse will not be tolerated.

What successes has the Beacon Network reported so far?

The Beacon Network has been used in multiple investigations. In one case, investigators traced and blacklisted an address holding $1.5 million tied to an international scam, enabling a freeze when the funds reached an exchange. In another, $800,000 in scam deposits were identified and flagged for freezing.

A key network feature is that only verified investigators can flag addresses, limiting false positives and reducing operational risks for exchanges and custodians.

Who are the main targets for Beacon Network actions?

The Beacon Network will target major illicit actors including organized hacking groups, scammers, and addresses linked to state‑sponsored theft. TRM Labs highlighted priorities such as disrupting North Korea‑linked cybercrime groups, preventing terrorist financing, and recovering funds for victims.

The network also prioritizes onboarding new vetted partners to widen coverage and strengthen the ecosystem’s ability to intercept illicit flows globally.

How can participating services benefit?

• Faster interdiction: Automated alerts reduce response time and limit cash‑out opportunities.
• Shared intelligence: Members benefit from pooled tracing data and confirmed flags.
• Regulatory alignment: Coordinated action with law enforcement strengthens compliance and risk management.

Frequently Asked Questions

How do exchanges receive Beacon Network alerts?

Participating exchanges receive automated alerts when flagged funds are on‑chain and approach on‑ramps or custodial services. Alerts include trace data and provenance to support blocking or freezing transactions.

Can the Beacon Network be abused to freeze legitimate funds?

Access is limited to verified investigators and vetted partners. TRM Labs requires high confidence for flags and enforces accountability to minimize misuse and false positives.

Will Beacon Network cover multiple blockchains?

Yes. The network is designed to trace funds across chains and through multiple transaction hops to identify where illicit assets travel and where interventions can be effective.

Key Takeaways

• Beacon Network enables minutes‑level interdiction: Rapid alerts reduce time windows for criminals to cash out.
• Cross‑sector collaboration: Exchanges, custodians, law enforcement, and researchers share verified intelligence.
• Verified flags and accountability: Only vetted users can flag addresses to reduce misuse and false freezes.

Conclusion

The Beacon Network represents a coordinated, real‑time approach to stopping illicit crypto flows by combining forensic tracing, verified flags, and automated alerts. As more exchanges and institutions join, the system aims to shrink criminal cash‑out windows and improve recovery of stolen assets. Watch for broader adoption and additional verified participants.