Hi everyone, I lately been thinking about a worst-case scenario of the following situation: If a crypto wallet that’s linked to your KYC identity (like one tied to a KYC exchange) gets hacked and you lose for example your phrases, what can you actually do about it? Even if there’s no money in it, a hacker could still use it for sketchy stuff, and because it’s linked to your verified identity, that could come back to you.
Is there any way to prove that the wallet is no longer under your control? Can you flag it or disconnect it some how ?
If the wallet is hacked and there's no money, you just need to let the exchange know about that incident from your registered email address. The exchange can then freeze your account from being used or give you back access if you are able to prove the ownership.
If an account is hacked, I don't think the hacker will have access to your data files. These are usually centrally controlled by the exchange. Unless the entire exchange data is hacked, nothing much to worry about.