XRP has officially become part of a groundbreaking initiative aimed at combating cryptocurrency-related crime in real time. TRM Labs, a leading blockchain intelligence platform, unveiled its Beacon Network—an industry-first system focused on stopping crypto fraud as it happens. The project is backed by major industry players including Ripple and Binance.

A Collaborative Defense Against Crypto Crime

The Beacon Network is designed to intercept illicitly obtained digital assets before they can exit the blockchain ecosystem. Developed with input from federal law enforcement, stablecoin projects, central exchanges, and financial institutions, the program aims to fortify crypto security measures across the board.

Among the founding organizations are Ripple, Binance, PayPal, Robinhood, Stripe, Anchorage Digital, and Zodia Custody. These participants mark an unprecedented collaboration between the traditional finance world and the crypto industry to tackle blockchain-related threats with real-time solutions.

Global federal law enforcement bodies are fully integrated into the Beacon Network. They actively issue alerts and flag high-risk wallet addresses, aiming to prevent bad actors from converting stolen digital assets into fiat currencies. Additionally, security researchers such as ZachXBT, zeroShadow, CryptoForensics Investigators, and Hypernative contribute ongoing threat surveillance.

According to TRM Labs, since 2023, at least $47 billion in cryptocurrency has flowed into wallets associated with fraudulent activity. However, the actual figure is likely higher due to underreporting, either because victims are unaware of how to report the incidents or because of the stigma attached to crypto scams. This year alone, over $2 billion in crypto has been stolen from rightful owners.

The scale of threat spans from individual investors to well-established organizations, with stolen funds often being wired through complex laundering systems and quickly converted, making recovery extremely difficult. A significant case in point is the $1.5 billion Bybit hack from February, which saw over 10,000 transactions occur in the following month. This incident highlights the urgent need for faster detection and intervention mechanisms like Beacon Network.

Real-Time Functionality of the Beacon Network

Traditionally, responses to crypto crimes have often come too late—after stolen funds have been irretrievably moved. Beacon Network challenges this lapse by introducing real-time monitoring and proactive threat response.

Here’s how the system works:

• Address Flagging: Investigators tag addresses linked to suspicious activity. These tags are propagated throughout the network.
• Instant Alerts: Notifications are sent to involved platforms the moment compromised funds reach them.
• Actionable Holds: Exchanges can delay or freeze flagged assets, potentially halting illicit withdrawal attempts.
• No Cost for Partners: Law enforcement agencies and authorized crypto exchanges can join the network free of charge.

Heisen Guo, Chief Security Officer of HTX, reflected on the importance of community-driven responses in light of increasing threats:

“As the crypto industry continues to evolve at a rapid pace, threats such as hacking and money laundering have become increasingly sophisticated, intelligent, complex, and fast-moving.

It is no longer feasible for any single team to fight these crimes effectively — we must unite as an industry to build coordinated defenses and responses, and Beacon Network helps us do just that.”

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Blockchain analysts use real-time networks like Beacon to detect crypto fraud across global exchanges.