Black Market for KYC Documents


What was supposed to be a safe guard for investors is turning out to be a nightmare for cryptocurrency companies and their investors. False KYC (Know Your Client) documents are flooding the market and putting everyone at risk.
The fake documents and ID’s are creating a mess. Adverts like the one shown below show how easy it is to obtain these documents.
KYC documents were intended to screen out Chinese and US investors. Instead the false documents are becoming a business of their own.

With 80% of this year’s ICOs trading below their public sale price, investing in crowd sales is a risky business. Throw in mandatory KYC, and those risks are significantly heightened. Several projects have been compromised through the hacking of the third party handling their KYC, while others have had their mailing list leaked. In each instance, investors have been susceptible to being doxxed, and there have been reports of blackmail. Once online hackers obtain email addresses of investors, they will either attempt to socially engineer them; sell the addresses on the black market; or claim to have filmed the victim watching online porn, threatening to send the video to their friends and family if they don’t pay a ransom. Given these hazards, purchasing a fake ID to pass KYC seems like the lesser of two evils.


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