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 ?
We are still in the gray area though. If we can compare it in real life, it's like your credit card was stolen. But then you can report it to the police. Here in crypto, I don't know if there is some authorities that you can report that your wallet is stolen specially our KYC documents. That is the most important thing, because we all know that if the cyber criminals can get a hold of your personal info, they can used it at their disposal, or even sell it in the dark market. And how many times that we heard about this kind of case? that suddenly a person supposedly committed a crime without his/her knowledge. Maybe you can report it locally to your police, at least some documents that can proved that your information was stolen so that if something worst happen to you, you will have this proof that you didn't do anything and that your data was stolen online.