Upbit pays users for reports of illegal crypto activities

South Korean exchange Upbit started a bounty program for the users to report fraudulent ICOs and crypto scams
28 March 2018   492

With the cryptocurrencies gaining popularity various fraudulent schemes has been in upswing too. And now the largest South Korean exchange Upbit launched a reward system for users who report such schemes.

Upbit has created the reward system for the platform users to report fraudulent ICOs and illegal scams posing as cryptocurrencies. The aim of such a campaign is to “prevent damage due to illegal fraud and to create a sound cryptocurrency ecosystem”. The exchange asks all of its users to participate in the program in order to fish out the scammers and clean up the stage for the real ICOs to shine.

The reward program has been launched just recently and is already providing the results, confirming that it indeed works. At this time, more than 20 cases of fraud were reported to the police.

If several witnesses or victims report the same ICO or currency offering, then the cash award will go to the first reporter of the illegal case. The reward Upbit pays for the original compliant is 1 million won, which is approximately $930. A good incentive for a good cause, you may say. The campaign on Upbit will be held for a year, ending in March 2019.

And yesterday, Upbit's rival exchange Bithumb has started to distribute brochures with the information about common scam schemes and how to prevent the damage from them in easy to understand format, aimed at common user base.

Korean Exchange to Create AML Hotline

Operators will be checking suspecious transactions in real time by the user reports
28 January 2019   467

The four leading cryptocurrency exchanges of South Korea are joining forces in the fight against money laundering, reports the local news agency The Korea Herald.

Bithumb, Upbit, Korbit and Coinone exchanges organized a hotline through which users can report suspicious transactions that may be related to criminal activities, such as financial pyramids. A representative of one of the participating exchanges, on condition of anonymity, said that operators would be able to verify suspicious transactions in real time and immediately block the accounts associated with them if the information is confirmed.

Earlier this month, it became known that 21 South Korean stock exchange cryptocurrencies were audited by the security of local authorities. Most firms were unable to prevent criminal activity, but the measures used by Bithumb, Coinone and Korbit were satisfied with the regulators.

The cooperative step against money laundering via cryptocurrencies is expected to boost the soundness of the industry and to better protect consumers.
 

Quote, Yonhap

On January 20, it was reported that the leaders of the Korean Komid Crypto Exchange were sentenced to prison terms for falsifying trading volumes.