Ecoinmerce, a blockchain-based social e-commerce marketplace, has announced the launch of an “anonymous tip line” called the Crypto Community Watch Program that whistleblowers can contact to alert authorities about suspected criminal activity related to cryptocurrencies.

According to a press release published today, the Crypto Community Watch Program has been created through a collective effort by several crypto-related organizations, in order to clamp down on the large number of scams and fraudulent activities in the crypto industry.

“Cleaning Up” The Crypto Ecosystem

Crypto industry participants including ICO Alert, NewEconomies, Step VC, GZH, and Ecoinmerce have reportedly set up the anonymous tip line to “[punish] the bad actors in the space while rewarding those brave enough to stand up.”

Rex Chen, COO at Ecoinmerce, expressed serious concerns about the increasing number of hacks and scams in the crypto space. Chen remarked, 

“From the recent exchange hacks to the nearly-weekly reports of fraudulent projects taking off with investors’ money, it’s clear that crypto has a problem. Enough is enough. It’s up to the industry first and the regulators second to clean up the ecosystem. If you spend your time hacking, scamming, or intentionally misleading investors, your time is up.”

Rex Chen

100 Bitcoin Reward Pool 

A total of 100 bitcoins, currently valued at approximately $640,000, have been contributed by the crime-fighting group to an escrow account managed by a trusted third-party. The press release noted that the funds will be used to reward people who anonymously report crypto-related scams and fraudulent activity.

An anonymous online form has been provided so that people can report any illegal activity or fraudulent schemes they may come across in the crypto and blockchain business. Whistleblowers will also be able to include their Bitcoin (BTC) payment address in the confidential form, and if their tip-off “leads directly to the arrest or legal punishment of the wrongdoer”, then they will get “a portion of the reward pool.”

According to the press release, all information submitted via the anonymous tip line or online form will be investigated by those participating in the Crypto Community Watch program. Should the program members suspect any wrongdoing based on the findings of their investigation, then the related tip-off information will be forwarded to law enforcement authorities.

In order to maintain transparency and encourage active involvement from all members of the crypto community, the anonymous tip-off reports will be shared publicly on Ecoinmerce’s official website. Moreover, the program members have requested other crypto firms to join them in their effort to crack down on crimes in the space by creating their own watchdog groups.

Many Criminals Recently Arrested

Notably, the Crypto Community Watch program has been launched at a time when authorities have increasingly begun to arrest criminals involved in various fraudulent activities in the crypto industry. As CryptoGlobe recently reported, €2 million in counterfeit currency was handed to a South Korean businessman by a Serbian criminal in exchange for his bitcoins worth $2.3 million.

The fraudulent transaction took place at a 5-star hotel in France, however, local authorities were able track down and arrest the suspect.

In similar news, Divyesh Darji, the Asian head of BitConnect, was also arrested recently due to his alleged involvement in a large scam associated with the failed cryptocurrency.