Binance and Coinbase Join TRM Labs' Beacon Network

Binance, Bitfinex, Coinbase, Crypto.com, HTX, Kraken, PayPal, Poloniex, Ripple, and Zodia Custody are among the first participants in the Beacon Network, a new initiative aimed at combating crypto crime, spearheaded by TRM Labs. The collaboration involves leading federal law enforcement agencies to tackle crypto crime by identifying suspicious addresses and threats in real-time, aiming to alert users before fraudulent activities can take place, as per the announcement made on Wednesday. ‘Protecting consumers and ensuring the integrity of the crypto ecosystem requires seamless collaboration between industry players and law enforcement,’ stated CJ Rinaldi, Chief Compliance Officer at Kraken. The Beacon Network seeks to eliminate competition barriers for the sake of a healthier crypto environment. It offers four key services: flagging unusual activities, providing real-time alerts for suspicious funds arriving at member firms, and facilitating rapid responses to flagged deposits. Joining the Beacon Network is free and voluntary for verified exchanges and law enforcement partners. ‘There’s nothing like the Beacon Network,’ said Valerie-Leila Jaber, Coinbase Global’s Head of Anti-Money Laundering. ‘This early warning system allows us to identify and freeze illicit assets, ensuring law enforcement can recover them, which is crucial for protecting victims and the wider ecosystem. Access to real-time intelligence is a game changer.’ TRM Labs reports that over $47 billion in cryptocurrency has been funneled to addresses associated with fraud since the start of 2023, focusing on preventing funds from exiting the crypto network, particularly from attacks by North Korean hackers, ransomware perpetrators, terrorist financing, and financial flows related to child sexual abuse material. Any verified member, law enforcement official, or respected security researcher can submit claims to track and attempt to recover funds. The network is open to stablecoin issuers, DeFi platforms, centralized exchanges, security researchers, and other trusted cryptocurrency community members.