In a pioneering press release announcement, TRM Labs, the blockchain intelligence firm that assists businesses and law enforcement in combating crimes involving cryptocurrency, has unveiled Beacon Network, the first dedicated response network to real-time crypto fraud. Live Crypto Crime Detection It’s designed to prevent illicit assets from leaving the blockchain and was developed in collaboration with law enforcement, stablecoin issuers, exchanges, and various other firms . Some of the founding members include Ripple, Binance, Stripe, Anchorage Digital, Zodia Custody, PayPal, Robinhood, and many others, forming a groundbreaking alliance between traditional institutions and cryptocurrency companies. Leading federal law enforcement agencies worldwide are actively participating in the network, triggering alerts and flagging critical threat-linked addresses to prevent criminals from off-ramping their ill-gotten gains. Various security researchers and firms, including ZachXBT, zeroShadow, CryptoForensics Investigators, and Hypernative, among others, provide continuous threat monitoring. According to data from TRM Labs, at least $47 billion in cryptocurrency assets has been sent to addresses associated with fraudulent activities since 2023. However, that number is likely to be much higher, as most victims of this type of crime either do not report it, as they do not know how, or are simply ashamed that it has happened to them. Moreover, the year so far has seen over $2 billion of crypto funds stolen from their rightful owners. This constant wave of hacks, scams, and other illicit activities continues to drain billions from individuals, from everyday investors to well-established and secure organizations. In many cases, the stolen capital is quickly funneled and converted to fiat before the law can take action. A prime example is the disastrous $1.5 billion Bybit hack that occurred in February of this year, with the bad actors performing over 10.000 transactions in the month following the attack, provoking the urgent need for faster responses and detection across the crypto ecosystem. How Will It Operate? Until today, law enforcement and crypto platforms have been slow to react to crimes, which often occur after the funds have already been stolen. Given that transaction processing times on the blockchain are typically rapid in most scenarios, the response time should be measured in minutes, rather than days. The Beacon Network is primed and ready to tackle the rising wave of crypto criminals by providing several key functions: Flagging and propagation: Investigators flag addresses linked to crime, and the network automatically labels the wallets linked to them Real-time alerts: These are triggered when tagged funds arrive at a participating exchange or platform Rapid response: Crypto platforms will have the ability to hold flagged deposits before they are withdrawn, effectively stopping the criminals in their tracks Accessible by design: Affiliate membership is of no cost to law enforcement partners and verified exchanges. “As the crypto industry continues to evolve at a rapid pace, threats such as hacking and money laundering have become increasingly sophisticated, intelligent, complex, and fast-moving. It is no longer feasible for any single team to fight these crimes effectively — we must unite as an industry to build coordinated defenses and responses, and Beacon Network helps us do just that.” – Heisen Guo, Chief Security Officer at HTX The post Ripple, Binance Behind TRM Labs’ Real-Time Crypto Crime Response Network appeared first on CryptoPotato .
