Some of the world’s biggest crypto exchanges and payment companies have come together to launch the Beacon Network, a real-time system designed to stop criminals from cashing out stolen funds. Blockchain intelligence firm TRM Labs announced the initiative and has drawn support from major players, including Coinbase, Binance, Kraken, Crypto.com, Bitfinex, Robinhood, PayPal, Ripple, and Stripe. Independent security researchers such as ZachXBT, Security Alliance (SEAL), and zeroShadow are also part of the project.
The launch comes at a time when crypto scams are costing users billions of dollars each year. According to U.S. Federal Trade Commission data, Americans alone lost more than $5.6 billion to crypto-related fraud in 2023, a 45% increase from the year before. A study by ScamAdviser estimates that between 2020 and 2024, global crypto scams drained at least $75 billion from victims, with schemes like “pig-butchering”, fake investment traps responsible for the bulk of losses. Blockchain intelligence firm TRM Labs says more than $47 billion in digital assets have flowed into fraud-related addresses since 2023, and over $2.3 billion worth of cryptocurrency was stolen through hacks and fraud in 2025 alone.
Executives from the participating exchanges have emphasized that collaboration is essential. Paul Grewal, Chief Legal Officer at Coinbase, called the Beacon Network “a necessary step in making crypto safer for everyday users.” Noah Perlman, Chief Compliance Binance official said it will allow exchanges to act quickly, rather than “waiting for months of investigation while scammers move funds across dozens of wallets.” By combining the resources of exchanges with the reach of payment giants like PayPal and Stripe, the network is designed to cut off escape routes for stolen assets.
Beacon Network works as an early warning system. When one participant identifies a wallet linked to fraud, the information is shared instantly across the network. If the stolen funds attempt to reach another member exchange or payment platform, an alert is triggered. This enables compliance teams to freeze funds instantly, preventing criminals from laundering profits through legitimate channels. In pilot cases, the system has already flagged suspicious deposits worth millions of dollars before scammers could withdraw them.
Crypto crime has flourished in the gaps between exchanges and regulators, but the Beacon Network signals a new front: industry-wide cooperation. By creating a shared shield against scams, major players are betting that crypto can mature into a safer space where trust is not an afterthought but the foundation.
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