Crypto Giants Unite with Law Enforcement to Launch Real-Time Beacon Network Against $47bn Fraud Wave

Global cryptocurrency giants, including Binance, Coinbase, PayPal, and Kraken, have joined forces with law enforcement agencies to launch Beacon Network, a groundbreaking real-time crime response system aimed at combating the escalating wave of fraud plaguing the digital asset space.

The initiative, announced by blockchain intelligence firm TRM Labs, comes against the backdrop of alarming figures showing that more than $47 billion worth of cryptocurrency has been sent to fraud-related addresses since 2023. Already in 2025, the industry has lost over $2.3 billion to hacks, highlighting the urgency of faster and coordinated action.

Beacon Network represents a significant shift from traditional approaches. Instead of waiting until criminals attempt to cash out stolen assets, the system is designed to intercept illicit funds before they leave the blockchain. It works by flagging wallet addresses linked to scams, hacks, and other financial crimes and instantly alerting participating exchanges. This enables platforms to freeze deposits and halt withdrawals in real time, cutting off escape routes for criminals.

TRM Labs confirmed that the network’s founding members include leading exchanges and payment firms such as Binance, Coinbase, Kraken, Ripple, Robinhood, Blockchain.com, Crypto.com, Stripe, OKX, and PayPal.

Federal law enforcement agencies across different jurisdictions are also plugged into the system, while blockchain investigators like ZachXBT and research outfits including Security Alliance and Hypernative are providing continuous monitoring and intelligence feeds.

Executives across the industry emphasized that this level of real-time collaboration marks a turning point in safeguarding both investors and the wider financial system.

“There’s no program like Beacon Network. It’s a true early warning system that helps us identify and freeze illicit assets so law enforcement can recover them,” said Valerie-Leila Jaber, Coinbase’s Global Head of Anti-Money Laundering.

Binance’s Chief Compliance Officer, Noah Perlman, added: “We are looking forward to strengthening cross-collaboration through Beacon Network and proactively addressing risks and issues, allowing us to build more trust and security, which are the cornerstones of broader crypto adoption.”

Triggered by Record Hacks

TRM Labs underscored the urgency of such collaboration by pointing to the massive $1.5 billion Bybit hack earlier this year, in which attackers funneled stolen funds through over 10,000 transactions within just one month. Such incidents, it noted, demonstrate the razor-thin window exchanges have to respond—often measured in minutes—making real-time coordination essential.

“This isn’t about adding another layer of compliance. It’s about unlocking the full potential of crypto: real-time transparency, automated detection, and rapid response,” said Esteban Castaño, CEO and co-founder of TRM Labs.

According to a recent report by blockchain analytics firm Chainalysis, crypto hacking incidents surged in 2024, with the total funds stolen increasing by 21.07% year-over-year to $2.2 billion.

Earlier this year, Bybit revealed it fell victim to a “sophisticated attack” that drained Ethereum (ETH) valued at $1.4 billion from one of its offline wallets. The breach, described as the largest crypto heist in history, sent shockwaves through the digital asset industry.

That single incident alone surpassed previous record-setting breaches, including the $624 million Ronin Network hack and the $611 million Poly Network exploit, according to data from Rekt, a platform tracking Web3 and crypto-related security failures.

What It Means for the Industry

The launch of Beacon Network signals a new era in crypto regulation and security—one where exchanges, payment processors, blockchain sleuths, and governments are aligning in real time. Analysts say its success could redefine how trust is built in the digital asset economy, particularly at a time when public skepticism around security has slowed adoption.

The industry is attempting to close the gap that criminals have historically exploited by moving from reactive responses to proactive interception. But experts caution that maintaining the integrity of such a network will require continuous cooperation across borders, especially as cybercriminals become more sophisticated.