The largest South Korean cryptocurrency Upbit exchange has offered its users to use a new system aimed at identifying multi-level, illegal scams related to cryptocurrency or ICO.
In his statement Upbit claims that the number of illegal cases, multi-level fraud is growing, and the new system is aimed at the prevention of damage associated with the cryptocurrency fraud”. Upbit launched by the largest developer of messenger Kakao in South Korea, supported by the American exchanges Bittrex, asks all its users to participate in the fight against cryptocurrency fraud. According to Hankook Media, the system will operate for the 12 months to March 2019. However Upbit may extend this period.
“If witnesses or victims of fraud misleading Upbit and the investigating authorities about such cases, the cash reward will be paid to the person who first notified about the illegal activity,” said news channel.
Upbit confirmed this information and added that the first declared will be paid remuneration in the amount of 1 million won ($930).
According to Upbit to report suspicious illegal scheme through the app Upbit, using Kakao Talk.
According to Hankook Media, “Upbit tracks multi-level fraud monitoring”. Exchange has already told the police about more than 20 fraudulent schemes. In November last year, the management received a letter of thanks from the police station Suwon Chungbu after reported the criminal who gave out itself for the employee of the police Department of Seoul.
The exchange’s management also confirmed the discovery of “a recent fraudulent activity associated with the ICO Kakao Coin”. After reports and rumors about the pre-sale of their coins company Kakao Corp has published a notification that “concerned about the damage caused by fraudulent activity distribution”, explaining that the manual “preparing to create a child blockchain of the company.” Kakao stressed that all pre-sales and attracting investors for the tokens Kakao “not true”.
On Tuesday the cryptocurrency exchange Bithumb also distributed brochures aimed at preventing the damage associated with the cryptocurrency fraud. Guide Bithumb explained that the brochures easy to understand format in the form of comics provides information about voice phishing, pharming, SMS phishing, hacking and preventive measures.
At the time of publication Upbit is the largest cryptocurrency exchange in South Korea and the third largest in the world with a daily trading volume of $1.1 billion Bithumb is the second largest stock exchange in the country with a daily trading volume of $686 million.