Crypto Exchange Upbit Offers Reward For Reporting Fraudulent Crypto Schemes

South Korean cryptocurrency exchange Upbit has launched a program to reward users for identifying fraudulent multi-level cryptocurrency schemes and initial coin offerings (ICO).

Upbit, which is backed by South Korean chat giant Kakao, said that the number of illegal multi-level and Ponzi fraud cases has been increasing and its new system attempts to “prevent damage due to illegal fraud and to create a sound cryptocurrency ecosystem.” It is encouraging its users to participate in the new rewards program in order to prevent cryptocurrency fraud.

The program is currently in affect and will last for the duration of one year, ending March 2019. Upbit will decide later if this period will be extended.

“If illegal multi-level eye witnesses or victims report to Upbit and investigating agencies at the same time, a cash award will be given to the first reporter of the illegal recruitment case,” Upbit said. “We will pay a reward of KRW 1 million ($940,000).”

According to Hankook Media, Upbit has been tracking illegal multi-level coin recruitment schemes with its own monitoring. By March 23, the exchange has reported more than 20 fraudulent cases to the police. Last November, Upbit received a letter of appreciation from Suwon Chungbu Police Station after reporting a culprit pretending to be the Seoul Metropolitan Police Agency.

Upbit is the second cryptocurrency exchange to launch such a reward program. Earlier this month, Binance launched a similar program. The exchange is offering a $250,000 bounty in Binance Coin (BNB) to anyone who can provide information that leads to the “legal arrest” of the criminals that attempted to hack the platform.

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