The only downside here is data leaks, and this is happening everywhere, even with the most secure facilities. As long as it is human beings and the computer that are involved in the sorting and for the safekeeping, it can leak. Even with data leaks, I only get prepared for those who I do not know but would contact me. They can't get any useful information from me, which is the angle the data leak is so dangerous for random people whose data are leaked.
Data leakage is the main reason why you can be the target of a criminal, to arrive at your house with total security that you use crypto and they have it taken away from you anyway, a long time ago I saw how in Russia a person published something I don't remember what it was, what I know is what they did to him because they saw that he had his bitcoin address and when they saw he had considerable money, what did the criminals do? They arrived at his house, they made him break into his computer and transfer those bitcoins to a new wallet, because they arrived and pointed a gun at his head, what did they do? They stole it and the criminals left as if nothing had happened, but why did this happen? Because of the data leak, there are many people who are dedicated to these things, they are capable of doing anything for money, and if this happened in Russia, it means that it can happen anywhere in the world.
I pray we are not a victim of data leak violence, the data leak is bad and it could lead to anything. Nevertheless, completing our KYC is not an automatic way to leak our data, which was my main point in that post. Fine, data can be leaked through the self-serving activities of some unscrupulous employees, regardless, it is not always rampant and the direct threat to the victim of the data leak is not always huge if the person is wise enough not to disclose his further information upon contacting him on the telephone or online, and by not clicking unsolicited emails and links and sharing of codes. I have never heard that a data leak through the KYC of a reputable company has caused physical contact and an attack on the person, and even if it is happening, the case is so little to the point it is not always known.
This is the same as having a bank account, we have a lot of people's details with banks and many of these people are high-net-worth individuals and big companies owners. Most of these guys are regular guys we see daily, but still, they are not always being attacked or harassed because they do KYC with their bank and also for the fact that they live an expensive life. This is even as bank employees could also compromise but yet, they are not being harassed due to such.
What you explained is the case of a lousy person attracting everyone to himself on social media, including criminals. This has nothing to do with any company or the KYC completion, so what do you expect? Anything can happen to such a person, even the most worthless criminals may do the operation of locating him or his house and perpetrate the evil easily. What am I trying to establish? The data leaks are minimal and so are their threats compared to how some people take it, and data could be leaked even with the government-secured facilities. Even without KYC, one can be a victim of an organised crime, we should only pray we are not the victim of such a calculated crime.