Main Takeaways
Binance has joined the Beacon Network, the first real-time crypto crime response network, as a founding member. Developed by TRM Labs in partnership with industry leaders and law enforcement, Beacon Network helps prevent illicit funds from leaving the blockchain.
The initiative represents a new phase in public-private collaboration, moving from slower, siloed responses to fast, coordinated action.
By strengthening trust and security, Beacon Network will support the long-term growth and adoption of digital assets worldwide.
Binance is proud to be a founding member of Beacon Network, a real-time crypto crime response network built by blockchain analytics firm TRM Labs and supported by leading crypto industry players. We see this initiative as an important evolution of the collaborative mechanisms that have already made crypto safer: intelligence sharing, joint investigations, and private-public task forces.
With Beacon Network, the industry is now building infrastructure that shifts the balance of power away from criminals and toward proactive defenders, using the transparency and speed of blockchain itself to protect users. And Binance’s role as the world’s largest exchange makes our participation especially significant: with over 280 million users and the deepest liquidity in crypto, our ability to detect and respond to flagged funds strengthens the resilience of the entire ecosystem.
The Power of Real-Time Response
For years, fighting crypto-related crime has been a challenge of timing and coordination. Investigators often identified illicit funds only after they had been withdrawn, with little chance of recovery. Platforms and regulators acted in isolation, reacting instead of preventing.
This approach worked in many cases: billions in illicit funds have been frozen and returned to victims. Yet, the gaps were still there. The reality is that in a digital environment, criminals can move stolen assets through thousands of transactions in minutes. Intervening before they reach an off-ramp requires faster, more connected infrastructure.
Beacon Network, developed by TRM Labs, is designed as the industry’s first real-time crypto crime response system. It connects exchanges, stablecoin issuers, and law enforcement into a live intelligence network.
Here’s how it works in practice: verified investigators flag addresses linked to hacks, scams, or other financial crimes. Instead of remaining siloed, this intelligence is instantly propagated across the network. When flagged funds reach a participating platform, the system generates an immediate alert. Exchanges can then review, freeze, or block the funds before they are withdrawn. It’s the difference between watching the money disappear and actually stopping it.
As Binance’s Chief Compliance Officer Noah Perlman put it, “Blockchain has proven to be one of the most powerful tools to fight financial crime. Beacon Network further enables private and public sector collaboration to ensure that we continue to lower crime on the blockchain.”
The Threat Landscape, and Why This Matters
The crypto industry has made enormous strides in reducing the prevalence of crime. Today, illicit activity makes up less than 1% of all crypto transactions, according to multiple independent reports. That said, the threat is still real. Hacks, scams, and fraud continue to siphon billions globally each year.
Even as overall rates of criminal activity decline, the scale and sophistication of attacks require better coordination. The Bybit hack earlier this year showed how quickly stolen funds can spread: over 10,000 transactions in the first month. Beacon Network flips that script, giving exchanges and issuers the tools to respond in real time and law enforcement the ability to act before funds vanish.
How it Works
The network is designed to cover the full spectrum of high-impact financial crimes. This includes disrupting funds linked to North Korean hackers, blocking ransomware payments, preventing the financing of terrorism, and recovering stolen assets for scam victims.
What makes Beacon Network stand out is speed. Once flagged, funds are tracked automatically, alerts are sent instantly, and platforms can intervene immediately. Membership is open: crypto exchanges, law enforcement agencies, stablecoin issuers, DeFi platforms, and security researchers can all join. Crucially, affiliate membership is free for verified partners, ensuring broad access and adoption.
Binance is not alone in this effort. Other founding members include Coinbase, PayPal, Kraken, Ripple, Crypto.com, OKX, Bitfinex, and several others. Together, we’re laying the groundwork for a global security network that spans borders and platforms.
This collaborative initiative reflects a broader truth: trust and security are the foundations of broad crypto adoption. Users, regulators, and institutions will only engage with crypto if they believe it is safe. Projects like Beacon Network show that the industry is committed to building that trust.
Final Thoughts
Beacon Network is an important step toward realizing crypto’s potential as the most secure financial system in the world. By leveraging blockchain’s transparency and speed, and by connecting public and private actors in real time, the initiative helps the industry’s security architecture become more proactive and efficient.
For Binance, being a founding member is both a responsibility and an opportunity. We are committed to building a safer, more resilient crypto ecosystem, one where innovation can thrive thanks to security built in at every level.
The fight against illicit finance is far from over, but with tools like Beacon Network, the balance is shifting in the right direction.