Ripple is part of a new network designed to stop crypto theft in its tracks. This network, called Beacon, uses automation to catch criminals before they can cash out their ill-gotten gains.
How Beacon Works
Beacon constantly monitors suspicious cryptocurrency addresses. As stolen funds move between wallets and different blockchains, Beacon sends out instant alerts to exchanges and financial firms. This allows them to freeze assets before the criminals can convert them to cash. Think of it as an early warning system for the crypto world.
Who’s Involved?
This isn’t a solo effort. Big names like Ripple, OKX, Crypto.com, and Anchorage Digital are founding members. Binance, Coinbase, and Kraken are also cooperating by sharing information on suspicious addresses. The more companies involved, the harder it is for criminals to hide their tracks.
The Bybit Heist: A Real-World Example
The February hack of Bybit, where North Korea’s Lazarus Group stole around $1.5 billion, highlights the importance of Beacon. Hackers used complex methods and moved quickly to launder the money. Beacon aims to prevent this by giving exchanges a heads-up while the trail is still hot.
The Missing Piece: Stablecoins
While Beacon is a significant step forward, it’s not perfect. Major stablecoin companies like Tether and Circle aren’t currently involved. This is a problem because stablecoins are often used to quickly move and hide stolen funds. Until these companies join, criminals might still find ways to escape detection.