Categories: MarketsMenafn

Aleo Users Worried Amid KYC Documents Leak

Reports say that Know Your Customer (KYC) papers on Aleo’s decentralized blockchain platform have been leaked.

Aleo is known for its zero-knowledge (zk) cryptography. However, some users found private information sent to their email inboxes by mistake, and the company is now being investigated.

Aleo’s KYC Documents Leak Sparks Privacy Concerns

Reports going around on X say that Aleo accidentally shared KYC papers on Feb. 25. To collect rewards, platform users must follow Aleo’s internal rules and go through Know Your Customer (KYC)/AML (Anti-Money Laundering) procedures and pass the Office of Foreign Assets Control (OFAC) screening.

A user named @0xemirsoyturk said they got KYC papers that included selfies and ID card photos of someone else. This made people worry about the safety and privacy of user data. Another user, @Selim_jpeg, confirmed the claim by saying they also got someone else’s KYC documents.

HackerOne is a third-party protocol that users interact with to earn Aleo rewards. Its job is to collect users’ unencrypted KYC data. People are worried about the security measures in place because the privacy breach goes against the ideas behind zero-knowledge layer-1 blockchain platforms, which are meant to improve user privacy and security.

Platforms like Aleo use zero-knowledge-proof cryptography to make transfers possible without giving away specifics, which protects privacy. These methods aim to give users more control over their data by making it harder for outsiders to find or access private data.

Some people, like the founder of Galactica, a layer-1 blockchain system, have said the situation is ironic. The company’s founder said that a system for programmable privacy shouldn’t, in theory, let anyone get to user data. He said, “It’s ironic that a protocol for programmable privacy uses a third party to collect users’ unencrypted KYC data after that leaks to the public.”

Sarvodaya, a well-known person in the blockchain space, stressed the importance of creating zero-knowledge or fully homomorphic encryption (FHE)–based storage and proof methods for private data. Protocol rules must make sure that no one party can see the data that is stored in these kinds of systems.

As Aleo gets ready to start its mainnet in a few weeks, the incident has made people wonder how committed the platform is to privacy and how well its security measures work. In an interview with The Block, Alex Pruden, executive head of the Aleo Foundation, said that the last bug fixes are being made to make crypto transactions on the Aleo network more private.

Jerry Rolon

After working for 7 years as a Internet Marketer, Jerry now aims to explore the journalistic side of Internet. With his impeccable knowledge in this domain, he churns out some of the best news articles from the internet niche. With respect to acedamics, Jerry earned a degree in business from California State University.

Recent Posts

XRP Whale Transfers Spark Surge, Ethereum Eyes $4,000, Bitcoin Targets $130K — Find Mining Launches New App

As Bitcoin Targets $130K and Ethereum Nears $4,000, Find Mining Empowers Users with Smart Cloud…

20 hours ago

U-topia Joins The International Chamber of Virtual Assets Through TheBlock’s Startup Program

Dubai, UAE, 29th July 2025, ZEX PR WIRE, U-topia, a technology company working at the intersection…

20 hours ago

BNB Rallying Over 6%—Why Are Savvy Investors Secretly Flocking to BTC Miner Cloud Mining?

New York, 29th July 2025, ZEX PR WIRE, Today, Binance Coin (BNB) led the market…

20 hours ago

$1 Memecoin Relaunches as Community-Led Movement Against Inflation and Dollar Erosion

London, United Kingdom, 29th July 2025, ZEX PR WIRE, A decentralized crypto protest is gaining…

1 day ago

Predictino Launches Public PREDINO Presale to Bring AI Forecasting to Crypto Traders

London, UK, 29th July 2025, ZEX PR WIRE, Predictino, an AI-powered trading intelligence platform, has…

1 day ago

Global Side Hustle Revolution: Remote Workers Flock to InvroMining Cloud Mining, $100 Daily Earnings Becoming the New Normal

London, UK, 28th July 2025, ZEX PR WIRE, Globally, “telecommuting” and “digital side hustling” are…

2 days ago