Rewards for corporations

How does a corporation get “wanted” and how is the reward removed? like corp xxxx wanted 500,000,000 isk.
and then how are the corp members able to remove the “reward”?

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When they lose enough ships equal to the value of the bounty.

If it’s your corp, then just shoot each other so you’re paid the bounty.

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Is it an intended functionality?

Yes.

Not quite a useful functionality, but it is precisely what CCP wanted to put in.

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