A group of crypto, finance companies, as well as regulatory authorities, launched the Beacon Network. This network makes it possible to quickly detect and freeze the funds stolen on the blockchain, by bringing together actors like Coinbase, Binance, Kraken, Paypal and Ripple, alongside security researchers and the police.
In short
- Launch of the Beacon Network, a collaborative network bringing together crypto giants and the police to identify and freeze the illicit funds.
- TRM Labs describes the system as a “kill chain” applied to digital assets, capable of switching from blocking detection in a few minutes,
- The network made it possible to block more than a million dollars from scams and prioritizes hackers, massive scams and financing of terrorism.
An unprecedented alliance to counter Crypto fraud
Since 2023, more than $ 47 billion in cryptos have circulated towards addresses linked to fraud and fraud, according to TRM Labs. To respond to this growing threat, a collective bringing together major players in crypto and traditional finance launched the Beacon Network, a collaborative system dedicated to the identification and freezing of illicit funds.
Among the founding members are Coinbase, Binance, Kraken, Robinhood, Paypal, Digital Anchorage and Ripple. Alongside them combine security researchers like Zachxbt and the Security Alliance (SEAL).
The authorities of several countries also participate and thus strengthen the effectiveness of the system. The stated objective is to prevent criminals from converting or whitening their earnings by exploiting the flaws between platforms.
The network allows verified users to report suspicious addresses in real time. As soon as the cryptos funds concerned reach a connected service, an alert is transmitted to block transactions before they disappear.
From slow monitoring to “Kill Chain” in real time
Traditionally, surveys on stolen crypto funds encountered a major obstacle, in particular the speed of transfers. After piracy of Bybit to $ 1.5 billion, cryptos had been moved via more than 10,000 transactions in a few weeks. Which made any recovery almost impossible.
The Beacon Network changes the game. TRM Labs describes it Like a complete “Kill Chain” applied to digital assets. He joined detection, tracing and frost within a few minutes, instead of several days. This approach strongly reduces the ability of criminals to disperse or convert their assets.
Only investigators and approved partners can report an illicit address. Also, each report implies a clear responsibility and must be based on solid evidence. Indeed, this filter aims to guarantee the reliability of the system and to avoid any abuse in its use.
First results and control priorities
The Beacon network is not only theoretical. He has already allowed several concrete actions. Indeed, in one case, $ 1.5 million from international fraud were located and then blocked during their withdrawal attempt. Also, in another case, we identified and frozen in time fraudulent deposits of $ 800,000.
TRM Labs also stresses that the recruitment of new partners remains essential to strengthen the efficiency of the system.
With the extension of this network, criminals have fewer and fewer options to whiten their earnings. For crypto players, this initiative marks a decisive step towards a safer and more transparent ecosystem.
Network priorities first include monitoring of funds related to North Korean hackers who signed a record year in the flight of cryptos in 2024. They then include the fight against terrorism funding and the protection of victims of mass scams.
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