Founder of DeFiance Capital: Frequent KYC renewal requests ultimately become a "honeypot" for users' important information

TechFlow news, May 15 — Arthur, founder and chief investment officer of DeFiance Capital, posted on X that Coinbase really needs to fix their issues. If Coinbase ultimately becomes a honeypot for users' critical information, there's no reason to keep requiring repeated KYC.

Previously, hackers obtained some personal information from less than 1% of Coinbase's active users by bribing overseas customer service staff, though passwords, private keys, and funds were not compromised. Coinbase refused to pay a $20 million ransom and has established a $20 million bounty fund to track down the attackers.