Global Crypto Industry Launches Real-Time Network to Combat Digital Asset Crime

Crypto crime has surged in recent years, with billions in digital assets stolen through scams and high-profile hacks. Investigators warn that stolen funds often vanish within hours, moving across thousands of transactions before exchanges or regulators can react. To address this challenge, a new initiative called the Beacon Network has been launched, aiming to provide real-time alerts across the industry. Developed by blockchain-intelligence firm TRM Labs, the system is designed to connect exchanges, payment providers, custodians, and law enforcement in a single collaborative framework.

According to TRM data, over $47 billion in cryptocurrency has been linked to scam-related wallets since 2023. In 2025 alone, more than $2.3 billion has already been stolen. A major contributor was the Bybit hack, which drained $1.5 billion and was moved through more than 10,000 transactions in just weeks. Without fast coordination, stolen assets often disappear into fiat off-ramps before authorities can intervene.

How the Beacon Network Works

The system operates as a real-time alert framework. When approved investigators flag a suspicious or compromised wallet, the alert spreads across connected addresses. If those funds enter a member exchange or payment firm, compliance teams receive an instant notification, allowing them to freeze deposits before withdrawals occur. Unlike older siloed approaches that delayed action for days, Beacon aims to cut response times to minutes.

Membership is free for vetted exchanges and law enforcement, while only authorized investigators can label wallets. TRM describes it as an “end-to-end kill chain” for digital-asset crime.

Founding Participants

The founding members represent key sectors of the crypto economy:

• Exchanges: Coinbase, Binance, Kraken, Bitfinex, OKX, Poloniex, Crypto.com
  
  

• Payment firms: PayPal, Stripe, Robinhood
  
  

• Custodians: Anchorage Digital, Zodia Custody
  
  

• Other participants: Ripple, 1inch, Rhino.fi, ChangeNow
  
  

• Independent groups: cyber-investigators, security researchers, law enforcement agencies
  
  

Industry and Policy Reactions

Participants stressed the urgency of rapid response.

• Kraken’s compliance lead said the system allows action “within moments.”
  
  

• PayPal noted the move fits with its broader security commitments.
  
  

• Stripe emphasized that financial crime spans both traditional and crypto sectors.
  
  

• Coinbase’s AML head called Beacon a “true early-warning system.”
  
  

• Binance highlighted improved cross-industry collaboration.
  
  

TRM’s global policy head, Ari Redbord, underlined that criminals are moving “faster and faster,” making real-time cooperation essential. Co-founder Esteban Castaño added that the goal is to align crypto with its promise of “transparency, automated detection and rapid response.”

The Bybit hack alone accounted for nearly US$1.5 billion, funneled through more than 10,000 transactions within weeks. Without rapid coordination, stolen funds often slip into fiat off-ramps before investigators can act. The challenge mirrors digital entertainment, where safeguarding money is critical to sustaining a thriving platform to play on—ranging from Telegram gaming groups to online casinos that depend on fast and secure transactions.

Wider Implications

The launch is significant beyond crypto trading. Stablecoins and digital assets are becoming mainstream in global commerce, with firms like PayPal rolling out a USD-backed stablecoin and Stripe expanding instant-payment systems. However, these same systems are attractive to attackers.

By demonstrating that private companies and regulators can collaborate at speed, Beacon Network aims to reassure policymakers and traditional financial institutions that crypto payments can be both secure and compliant.