Crypto exchange Korbit adds new measures for protecting fraud victims

Crypto exchange Korbit adds new measures for protecting fraud victims

  • Ali Raza
  • 23rd January, 13:32
  • Korean crypto exchange, Korbit, recently announced a pending update to its Terms of Service.
  • According to a recent notice, the exchange will start seizing assets in order to compensate victims of financial fraud involving cryptocurrencies, and other crimes.
  • The new rules will come into force in one month, starting from February 24th.

One of the South Korean cryptocurrency exchanges, Korbit, recently updated its Terms of Service. The new changes will allow the company to protect crypto fraud victims by seizing assets.

The number of crypto-related scams seems to be on a constant rise. With the crypto prices growing, many expect that this is not going to stop anytime soon. In other words, the criminal element in the world of digital currencies cannot be denied. This is why Korbit has decided to try and deal with it by equipping itself with greater powers.

Korbit’s plans to protect fraud victims

The exchange’s goal is to try and tackle fraudulent behavior throughout its platform and try to reduce it as a result. It explained these plans in a recent notice, which states that the new terms of service will provide the platform with the authority to seize funds and cryptos from its users. It supposedly even got permission to do so from ‘financial authorities,’ as the notice reads.

According to the mechanism, the seized funds will be used for giving crypto fraud victims their money back. The notice states that the Company (Korbit) may collect funds and virtual assets from fraud or other crimes. It then continues by saying that victims will only get compensated ‘upon request of the financial authorities or financial institutions.’

The new terms will be enforced starting with February 24th of this year, and the exchange will consider that its users have accepted them, provided that they do not terminate their service agreement until February 23rd, at the latest. The changes will affect everyone who uses the exchange, and it represents the most significant change in ToS since February of last year.

By Ali Raza
A journalist, with experience in web journalism and marketing. Ali holds a master's degree in finance and enjoys writing about cryptocurrencies and fintech. Ali’s work has been published on a number of cryptocurrency publications. Raza is the co-founder of 5Gist.com, too, a site dedicated to educating people on 5G technology.

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