San Francisco-based fintech firm Ripple has announced that it is a founding member of the Beacon network, a first-of-its-kind money laundering response system.
Ripple disclosed in a tweet today that it is an integral member of the Beacon network and would share in its goal to sanitize the crypto industry of its attack-prone reputation. It further lauded the innovation, insisting it would help intercept bad actors before they exit the blockchain.
Beacon Network: The First Real-Time Crypto Crime Response Protocol
Notably, this follows the launch of the Beacon network, a platform teased to stop crypto crimes in real-time. TRM Lab designed this platform, introducing a transformation to how the digital asset industry tracks illicit activities.
The system flags addresses tied to hackers or fraudsters and traces them in real-time as they move from wallet to wallet and across blockchains. Once they enter an exchange or financial institution, the Beacon network alerts concerned parties to seize these assets before withdrawal occurs.
Interestingly, this is a departure from the heavy dependence on crypto sleuths and individual tracking services to a platform automated to monitor these funds round-the-clock. TRM Labs proposed this as a solution to curbing the activities of hackers, who are tarnishing the reputation of the crypto industry.
Major Collaborations with Exchanges
The system, which TRM Labs confirmed is already running and has helped solve some crimes, quickly received adoption from major exchanges and law enforcement agencies. Besides Ripple, platforms such as OKX, Crypto.com, and Anchorage Digital are also inaugural members of the Beacon network.
TRM also secured collaboration exchanges such as Binance, Coinbase, and Kraken, which would share the real-time status of flagged addresses. Nonetheless, TRM Labs failed to mention stablecoin issuers Tether and Circle in the list. Still, it assured that it is working with most industry leaders and law enforcers globally to enhance the potency of the platform.
Notably, the need for such a platform became evident in the wake of the Bybit hack in February. Hackers tied to North Korea’s Lazarus Group drained $1.5 billion from the prominent exchange and, with a cleanly worked tactic, laundered the entire proceeds.
Speaking on the new initiative, Ripple’s head of financial crime compliance, Andrew Rosenberg, stated that the Beacon network will enhance trust and security within the crypto landscape amid its near mainstream adoption. He shared that Ripple is proud to be a founding member of the system, which he highlighted will provide real-time intelligence to freeze money laundering efforts proactively.
“There’s no program like Beacon Network,” Vaterie-Leila, the global head of anti-money laundering at Coinbase, stated. “It is a true early warning system that helps us identify and freeze assets so law enforcement can recover them,” she added.
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