ZachXBT strikes at KYC: "Useless practice" and threat to publish methods of evading surveillance
Renowned on-chain detective ZachXBT has sharply criticized the identity verification (KYC) procedure in the crypto industry. According to him, it is one of the most useless types of data for investigations, benefiting only malicious actors. The expert's frustration is so great that he has threatened to start publishing methods for evading excessive control — on-chain techniques that allow bypassing surveillance.
ZachXBT emphasizes that KYC becomes a tool in the hands of hackers when a company is breached, and its management bears no legal responsibility for the theft of user funds. He poses a rhetorical question: why does the state effectively force people to pay $100 on the black market for access to basic privacy?
The debate over verification is gaining momentum
ZachXBT's comment came in response to a post by ShapeShift founder Erik Voorhees, who warned about the potential spread of mandatory identification even for using a computer. Voorhees highlighted the dangers of total control. Matthew Green, a cryptography professor at Johns Hopkins University, also joined the discussion. He noted that under the pretext of protecting minors, an infrastructure is being built that ultimately ties a person's real name to their online actions.
How privacy technologies are turning into surveillance
Green described a step-by-step scenario: first, age verification using privacy-protecting technologies that collect identity documents will be introduced for accessing certain content. Then the question will arise: under what conditions can law enforcement access this data, and how can an anonymous action on a website be linked to a real name? In his assessment, this will require "fine-tuning" privacy technologies so that they store the user's true identity in a repository with every site visit.
Access to such data, according to the expert, will initially be granted by court order, then by request, and eventually integrated into mass scanning systems. Meanwhile, the stated goals — combating grooming and child sexual abuse material — will not be achieved, as these indicators have never decreased as a result of such measures.
My expert opinion: ZachXBT's position is absolutely justified. KYC in its current form is not protection but a facade that creates an illusion of security, while in reality it only increases the attack surface and undermines the fundamental principle of cryptocurrencies — financial freedom. Publishing methods for evading surveillance could become a powerful catalyst for regulators to reconsider their approaches, but it may also provoke a backlash in the form of even stricter measures.