South Korean Cryptocurrency Exchange Upbit Pays Users to Report Illegal Crypto Schemes

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Upbit, one of the most important cryptocurrency exchanges in South Korea, launched a system that rewards users for reporting fraudulent multi-level schemes related to cryptocurrencies. The Kakao-backed exchange has already identified over 20 scam schemes to the local authorities.

Upbit Helps the Crypto Community

As cryptocurrencies gathered the attention the general public around the world, many pyramid and Ponzi schemes appeared in the market. This has generated the loss of trust for cryptocurrencies and investments related to them.

Upbit, the biggest cryptocurrency exchange in South Korea by trading volume, is helping the community to avoid these fraudulent multi-level schemes. The crypto exchange has created a new system in which they invite its users to use a new system that identifies these illegal scams or Initial Coin Offerings (ICOs).

According to an announcement written by Upbit, the number of illegal Ponzi fraud causes has increased in the last times. The new system aims to “prevent damage due to illegal fraud and to create a sound cryptocurrency ecosystem.” All of Upbit users are able to participate so as to prevent cryptocurrency frauds.

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Upbit explained:

“If 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. To the original complainant, Upbit pays a reward of 1 million won (around $900 US dollars).”

In order to report these illegal schemes, users can use the Upbit app choosing the Kakao Talk consultation option.

At the moment, Upbit has $848 milion dollars trading volume. The most important pairs traded are STORM/KRW, EOS/KRW and BTC/KRW.

History of Tracking Fraudulent Activities

The cryptocurrency community tends to be very active when is about denouncing cryptocurrency Ponzi schemes or other fraudulent activities. Upbit has also been tracking different crypto-related scams, and in the last months it has reported more than 20 cases.

As we have written in the past, Kakao is ready to launch an ICO. There are several scam webpages that are claiming to be working on the Kakao Coin Initial Coin Offering.

Other cryptocurrency exchange that is involved in helping the community is Bithumb. This crypto exchange has decided to distribute brochures in order to prevent damage caused by scams or other fraudulent actions.

It is important to remember the BitConnect scheme that promised incredible returns to the investors. The pyramid scheme ended up imploding. The company accused the media saying that we were spreading lies about their activities. At the moment, BitConnect does not exist anymore as we knew it in the past.

BitConnect reached $470 dollars per coin (BCC) in December, and not it is being traded around $1 dollar.

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Image Courtesy of Kakao and Upbit