Ripple has joined as a founding member of the Beacon Network, a real-time crypto crime response system launched by TRM Labs, which aims to prevent illicit funds from exiting the blockchain.

The network includes major exchanges like Coinbase, Binance, Kraken, and payment companies such as PayPal and Stripe, representing most of the global crypto activity.

Industry leaders highlight that the Beacon Network provides an essential early warning system to identify and freeze illicit assets, supporting law enforcement efforts.

Law enforcement agencies worldwide participate by flagging dangerous wallet addresses, triggering real-time alerts to exchanges and platforms to stop criminals from cashing out stolen crypto.

The network fosters collaboration among exchanges, law enforcement, and security firms, sharing intelligence to freeze and recover illicit assets before they are cashed out.

When flagged funds reach participating exchanges or issuers, the system generates instant alerts, allowing platforms to review and freeze suspicious deposits before withdrawal.

The Beacon Network connects investigators and platforms in real time, enabling verified investigators to flag wallets linked to fraud or hacks, with risk labels automatically propagated across related addresses.

The system combines automation and human investigation, with ongoing efforts to incorporate AI and independent crypto sleuths to enhance detection of criminal networks.

Automated flagging is used to identify suspicious addresses, with investigators tracing related wallets across the blockchain to track illicit activity.

This initiative aligns with broader U.S. regulatory efforts to improve cross-border and domestic information sharing among financial institutions for anti-money laundering (AML) purposes.

Since 2023, over $47 billion has been sent to addresses linked to fraud, underscoring the urgent need for enhanced crypto crime prevention, especially amid rising thefts and North Korean hacking activities.

The Beacon Network marks a significant step toward international collaboration in digital asset security, potentially setting a global standard for combating crypto crime and fostering trust.