CNBC discloses that employees and volunteers of Coin Security guide users to avoid KYC restrictions

On March 24th, there were hundreds of messages seen by the media from the Discord server and Telegram group controlled and operated by Coin Security. The accounts of Coin Security employees or Coin Security training volunteers (referred to as “angels”) shared technologies that can be used to circumvent Coin Security’s KYC, registration, and verification systems.

Interpretation of this information:

The message above reports on the discovery of hundreds of messages from the Discord and Telegram channels controlled by Coin Security, a cryptocurrency exchange platform. Reports reveal that employees and training volunteers, also known as “angels,” shared technologies designed to circumvent the company’s KYC, registration, and verification systems. Such actions violate several laws and regulations, potentially exposing the public to financial risks.

The incident underscores the vulnerabilities of cryptocurrency exchanges and related activities. Coin Security, like many other exchanges, is required by law to observe a series of controls to prevent fraudulent activities, money laundering, and illicit transactions. One of the most crucial controls is Know Your Customer (KYC), which requires verification of identity documents and other information from customers. Further, registration and verification systems are necessary to confirm the identity of customers and prevent fraudulent registrations.

Sharing technologies that can circumvent these systems, therefore, undermines the entire cryptocurrency system, exposing the public to financial crimes. The message also raises questions about the trustworthiness of exchanges and their employees. The use of Telegram and Discord, which are unencrypted messaging platforms, may make it easier for employees or volunteers to compromise the system and perpetrate financial fraud.

In conclusion, the message above reveals alarming news about the potential for fraudulent activities in cryptocurrency exchanges. It underscores the need for strict regulations, controls, and collaboration among stakeholders to prevent financial crimes. A system that lacks transparency and accountability risks losing its credibility and trustworthiness, resulting in the loss of public confidence in the cryptocurrency sector.