{"id":117517,"date":"2018-03-28T02:26:00","date_gmt":"2018-03-28T06:26:00","guid":{"rendered":"https:\/\/insidebitcoins.com\/?p=117517"},"modified":"2021-08-22T06:58:02","modified_gmt":"2021-08-22T10:58:02","slug":"south-korean-exchange-paying-users-to-report-illegal-crypto-schemes","status":"publish","type":"post","link":"https:\/\/insidebitcoins.com\/news\/south-korean-exchange-paying-users-to-report-illegal-crypto-schemes","title":{"rendered":"South Korean Exchange Paying Users to Report Illegal Crypto Schemes"},"content":{"rendered":"
The Kakao-backed cryptocurrency exchange Upbit has launched a system to reward users for identifying fraudulent multi-level schemes related to cryptocurrencies. The exchange has already identified and reported 20 such schemes to the police.<\/strong><\/p>\n Also read:<\/strong>\u00a0Japan\u2019s DMM Bitcoin Exchange Opens for Business With 7 Cryptocurrencies<\/a><\/em><\/p>\n Reporting Illegal Schemes<\/p>\n South Korea\u2019s largest cryptocurrency exchange Upbit has invited all of its users to use its new system aimed at identifying multi-level, illegal scams posing as cryptocurrencies or initial coin offering (ICO) tokens.<\/p>\n Upbit wrote in its announcement recently that the number of illegal multi-level and ponzi fraud cases has been increasing and its new system attempts to \u201cprevent damage [due] to illegal fraud and to create a sound cryptocurrency ecosystem.\u201d The Kakao-backed exchange asks all of its users to participate in order to prevent cryptocurrency fraud. According to Hankook Media, the system will be in effect for one year and will end in March 2019; Upbit will decide later if this period will be extended.<\/p>\n \u201cIf illegal multi-level eyewitnesses 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,\u201d the news outlet elaborated. Upbit confirmed:<\/p>\n To the original complainant, Upbit pays a reward of 1 million won (~USD$930).<\/p>\n Reporting a suspected illegal scheme can be done through the Upbit app by choosing the Kakao Talk consultation option, Upbit detailed.<\/p>\n At the time of writing, Upbit is South Korea\u2019s largest crypto exchange and the third largest globally with a 24-hour trading volume of $1.1 billion. Bithumb is the second largest exchange in the country with $686 million trading volume in the same time period.<\/p>\n Tracking Fraudulent Activities<\/p>\n According to Hankook Media, \u201cUpbit has been tracking illegal multi-level coin recruitment [schemes] with its own monitoring.\u201d By March 23, the exchange has reported more than 20 fraudulent cases to the police. Last November, it received a letter of appreciation from Suwon Chungbu Police Station after reporting a culprit pretending to be the Seoul Metropolitan Police Agency, the publication described.<\/p>\n Bithumb\u2019s booklet.<\/p>\n The exchange also noted that \u201crecently fraudulent acts impersonating the Kakao Coin ICO\u00a0are also found.\u201d Following reports and rumors of the pre-sale of its coins, Kakao Corp issued a notice stating, \u201cwe are concerned about the damage caused by the fraudulent activity of the distributor,\u201d clarifying that the company is \u201cpreparing to establish a blockchain subsidiary.\u201d Kakao emphasized that all of the pre-sales and recruitment of participants and investors for Kakao coins \u201care not true.\u201d<\/p>\n On Tuesday, Upbit\u2019s rival Bithumb also distributed brochures aimed at preventing damage caused by cryptocurrency fraud. The exchange also provides resources at its walk-in customer centers to combat voice phishing and hacking. Bithumb explained that its booklets present concepts such as voice phishing, pharming, SMS phishing, hacking, preventative measures, and damage remedies in an easy-to-understand text and comic format.<\/p>\n What do you think of Upbit\u2019s offering and system? Let us know in the comments section below.<\/strong><\/em><\/p>\n Images courtesy of Shutterstock, Bithumb, Kakao, and Upbit.<\/em><\/p>\n Need to calculate your bitcoin holdings? Check our\u00a0tools<\/a>\u00a0section.<\/p>\n The post South Korean Exchange Paying Users to Report Illegal Crypto Schemes<\/a> appeared first on Bitcoin News<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"