ZachXBT vs. KYC: Why identity verification is "useless garbage" and what comes next
Renowned on-chain detective ZachXBT has sharply criticized KYC (Know Your Customer) procedures in the crypto industry, calling them one of the most useless types of data in investigations. According to him, this topic radicalizes him so much that he is ready to start publishing methods to bypass excessive control.
KYC — a gift for hackers?
ZachXBT stated that KYC benefits only malicious actors. When a company is hacked and its management bears no legal responsibility for the theft of user funds, the collected personal data becomes easy prey. The detective also raised the question: why does the state essentially force people to pay $100 on the black market for access to basic privacy?
The debate intensifies
ZachXBT's remark came in response to a post by ShapeShift founder Erik Voorhees, who warned that KYC might soon be required even to use a computer. Voorhees emphasized the danger of spreading mandatory identification on the internet. Cryptographer Matthew Green from Johns Hopkins University also joined the discussion, noting that age verification is increasingly becoming part of new regulatory proposals. Essentially, Green stresses, it is not about age but about personal identification — creating an infrastructure that ties a real name to online actions.
The scenario of total surveillance
Green described a step-by-step scenario for deploying such a system. First, age verification using privacy-protecting technologies would be introduced for access to some content. Then the question would arise: under what conditions can law enforcement access the data, and how will an anonymous action on a site turn into a real name? According to the expert, this would require "fine-tuning" private technologies so that they store the user's true identity in a repository with every site visit. Access to such data would initially be granted by warrant, then upon request, and eventually integrated into mass scanning systems. Green emphasized that the stated goals — combating grooming and child sexual abuse material — would not be achieved, as these indicators have never decreased due to such measures.
Expert comment: The stance of ZachXBT and Matthew Green is not just criticism but a warning to the entire crypto community. The fight for online privacy is entering a new phase, and KYC, as practice shows, is becoming not a protection but a tool of control and a risk. Investors and users should consider decentralized solutions today.