Appreciate you raising this, especially given your Connect experience.

This is a fair concern. Zoneless does verify the identity of payout recipients through Didit, and marketplaces can require KYC before the first payout. We also have support for blocking OFAC-listed wallet addresses, and also have additional checks to flag suspicious behaviour.

I agree that KYC doesn't eliminate marketplace fraud, though. That's true with Stripe Connect too; Stripe explicitly leaves platforms responsible for monitoring and preventing fraudulent activity even though it handles KYC and provides risk tooling.

I think the area I could make much clearer in the docs is the distinction between identity verification, sanctions screening, and marketplace fraud prevention.