By using all KYC documents and information to some people that we didn't know, of course theres a high risk of possibilities and will be used for other illegal activities, but then without any proof of how the docs are misused we can't do anything much with that by my speculation.
actually, the KYC system is really very troublesome, but it is undeniable that it is very good for reducing fraud and even terrorist funding. I strongly support KYC because tracking down fraud and terrorists in the blockchain ledger is not enough.