Binance, Coinbase, Kraken, and other exchanges have established the Beacon Network, the first real-time crypto crime response system. The solution was developed by the analytics firm TRM Labs, as noted in a Binance blog.
How the Beacon Network Operates
The network enables exchanges and financial platforms to instantly share information about suspicious transactions and block illicit funds before they are withdrawn. The system connects crypto exchanges, stablecoin issuers, and law enforcement agencies into a unified rapid response network.
Beacon Network functions as a distributed early warning system. The process involves several stages:
- Verified investigators flag crypto addresses linked to hacks, fraud, or other financial crimes.
- Information is instantly disseminated among all network participants.
- When flagged funds reach a participating platform, the system automatically generates an alert.
- Exchanges have the opportunity to review and block suspicious transactions before funds are withdrawn.
The key advantage of the system is its response speed.
“The Bybit hack earlier this year demonstrated how quickly stolen funds can be moved — over 10,000 transactions in the first month. Beacon Network is a game-changer, providing exchanges and issuers with real-time response tools and enabling law enforcement to act before the funds disappear,” the Binance blog states.
Beacon Network focuses on intercepting fund transfers linked to North Korean hackers, blocking ransomware payments, preventing terrorism financing, and returning stolen assets to scam victims.
Alongside Binance, Coinbase, and Kraken, founding participants include PayPal, Ripple, Crypto.com, OKX, Bitfinex, and several other companies.
Catch Me If You Can
In a recent report, Global Ledger analysts identified the speed at which funds are withdrawn by perpetrators after hacks as the main issue in the crypto industry.
In 84% of cases, security systems registered incidents on the day they occurred. However, this proved insufficient: in 68.1% of attacks, funds were moved before companies detected the breach.
According to the report, in 10.1% of incidents, hackers withdraw assets instantly, and in 64.7%, within the first 24 hours. The record transfer speed was four seconds.
According to estimates by Hacken, in the first six months of 2025, Web3 projects lost $3.1 billion to hacks and fraud. This amount has already surpassed the total for 2024, which was $2.85 billion.
Previously, Binance also joined the T3+ program to combat crypto crime.