Binance announced that it is among the founding members of the Beacon Network, developed by the blockchain analysis company TRM Labs and supported by leading players in the industry. This network stands out as the first real-time crime intervention system in the crypto industry.
Binance Became a Founding Member of the Beacon Network Developed by TRM Labs to Combat Crypto Crimes
The goal is to empower defenders against criminals by leveraging the transparency and speed of blockchain. Binance's role in this initiative is critical, given its over 280 million users and the highest liquidity in the crypto market.
One of the biggest challenges in combating crypto crimes has been timing. In most cases, illegal funds could only be detected after they were withdrawn from exchanges. The Beacon Network aims to overcome this issue. The system instantly communicates information to all members when addresses linked to hacks, fraud, or other financial crimes are verified. This allows exchanges to freeze funds before they are withdrawn.
Not only Binance but also giants like Coinbase, Kraken, Ripple, PayPal, OKX, Bitfinex, and Crypto.com have joined the Beacon Network. The network offers a comprehensive security infrastructure aimed at recovering funds associated with North Korea-linked attacks, ransomware payments, terrorist financing, and fraud.
Noah Perlman, Binance's Chief Compliance Officer, emphasized that blockchain is a powerful tool in the fight against crime, stating that the Beacon Network advances public-private collaboration.
Although the proportion of illegal activities in crypto transactions is currently below 1%, such real-time solutions are becoming increasingly critical against the scale and speed of attacks.
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