Yes, it may work, in theory
But in practice I have yet to see even a single case where it helped to get the money from your balance back even if you could actually prove the ownership. How many exchanges which required verification had scammed or been hacked in the past few years? Did this verification helped to retrieve the stolen coins, apart from personal info being stolen too? We are living in the real world, worts and all, not some KYC lalaland
I totally agree.
I don't know what these people are trying to prove to be honest. I'm starting to think that they're just a bunch of "idealists". Not be rude but, I can really feel the naivety of these people. It's a blockchain for god sake. These stolen coins and personal info that is being used by other people for their personal gains is the internet in a nutshell. If these people are thinking the internet is safe then they have to re-evaluate themselves, there's always a risk, you have to always expect it.
These kinds of incidents are unavoidable, that is why you also have to always have a plan B.