Upbit paying users to report illegal crypto schemes

Upbit paying users to report illegal crypto schemes

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The largest exchange from South Korea, Upbit, encourages users of the site to join the ranks of informers.

Remuneration of 930 dollars will be paid to someone who will contribute to the disclosure of any cryptocurrency scam-project. If the message comes directly from many eyewitnesses or victims, the compensation will go to the fastest – the first one who reported the incident. You can transfer information via Upbitapp by selecting the option Kakao Talk.

According to the owners of the trading platform, it is impossible to continue to turn a blind eye to the rampant fraud associated with cryptocurrencies. Therefore, Upbit also developed such a bonus system as “an attempt to prevent damage and create a healthy crypto-exchange ecosystem”.

The experiment will continue throughout the year, until March 2019. Then the owners of cryptographic platforms will decide whether to continue to search for scammers in this way. By this time, the Upbit Exchange had already recognized 20 scam-schemes and reported them to the police.

It is worth noting that this practice is gaining popularity in the cryptocurrency sector. Even before the Koreans, in January 2018, the Commodity Futures Trading Commission (CFTC) promised to pay $300,000 for information on popular pump-and-dump schemes. And if the informant reports about such a fraudulent scheme worth $1 million or more, he is entitled to compensation in the form of 10-30%.

Affected by hackers, trading platforms (for example, Binance) also usually offer a reward for information, which will lead to the capture of criminals.

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