TRM Labs introduces Beacon Network to freeze stolen funds in minutes

TRM Labs announced the Beacon Network on August 20, a system that tracks stolen cryptocurrency and alerts exchanges to freeze funds before criminals can cash out. The network includes Coinbase, Binance, PayPal, Robinhood, Stripe, Kraken, and Ripple as founding members.

The platform works by letting verified investigators flag suspicious wallet addresses. When tagged funds move to participating exchanges, the system sends automatic alerts within minutes. Exchanges can then review and freeze deposits linked to crimes before users withdraw the money.

Verified flaggers include law enforcement agencies, security researchers, and partner companies. Exchanges can join the network for free after verification. The system traces fund flows across different blockchains in real time.

TRM reported freezing $1.5 million in scam funds after network alerts. Major exchanges identified $800,000 in scam-related deposits through the system and flagged them for recovery.

Security researchers supporting the network include ZachXBT, Security Alliance, zeroShadow, Hypernative, Operation Shamrock, and CryptoForensics Investigators. Government agencies from the United States, Canada, the United Kingdom, the European Union, and Asia provide intelligence and flags.

The company cited $47 billion in cryptocurrency sent to fraud-related addresses since 2023. Hackers have stolen more than $2.3 billion in 2025 so far.

TRM pointed to February’s Bybit hack as an example of why speed matters. Attackers moved about $1.5 billion through over 10,000 transactions in the first month after the breach.

Beacon Network’s real-time intelligence allows us to act within moments,

said CJ Rinaldi, Chief Compliance Officer at Kraken.

Valerie-Leila Jaber, Global Head of Anti-Money Laundering at Coinbase, called it “an early warning system that helps us identify and freeze illicit assets.”

The network replaces slower notification methods that allowed criminals time to move stolen funds through multiple wallets and exchanges. The system automatically labels related wallets when investigators flag suspicious addresses.