Could aswell see this as test on data privacy. It exposes how vulnerable users who have their private data with custodians or on centralized platforms can be.
This is just a reported case, I believe there are many breaches that go unreported, with consequences that may be as bad as victims getting attacked for their bitcoins in their homes. This is part of the reasons kyc as we know it is dangerous and shouldn't be happening.
And when attacks on such platforms happen many users are affected since the data is not decentralized. Besides it's a serious violation of privacy due to the amount of sensitive information that get handed to complete strangers which may eventually be accessed by data thieves. A Bitcoin compatible model would keep such data decentralized and privacy-friendly.
in reality, any platform today is vulnerable to hacking and the theft of personal data. even government registries and databases can be breached, allowing attackers to obtain whatever information they seek. yet, various services continue to insist on identity verification, solemnly promising that the data is securely protected. we have seen plenty of examples demonstrating the true nature of this "security." I believe that platforms should be held strictly accountable to users for the loss of personal data and required to pay substantial compensation in case of data breach.
