If I understand correctly, this is the flow you are describing :
1. You show your ID to a "trusted third party"
2. They cryptographically attest "yep, this person has valid government ID"
3. The service (Discord, Coinbase, etc.) only gets the yes/no assertion, never sees your actual docs
The third party would still have your documents. You've just moved the honeypot, not eliminated it. Discord's breach was through a third party. Signzy (a KYC provider) got breached. The whole article is about how third parties can't be trusted either.
1. You show your ID to a "trusted third party"
2. They cryptographically attest "yep, this person has valid government ID"
3. The service (Discord, Coinbase, etc.) only gets the yes/no assertion, never sees your actual docs
The third party would still have your documents. You've just moved the honeypot, not eliminated it. Discord's breach was through a third party. Signzy (a KYC provider) got breached. The whole article is about how third parties can't be trusted either.