Banned users in Status AI (canceled) will face several sanctions: accounts permissions will be immediately frozen (response time ≤0.3 seconds), all virtual assets, namely NFT characters and digital land, will be marked as “in violation status,” and the value will depreciate by 78% (median) value (based on 2023 blockchain transaction statistics). For instance, when a trader was banned due to Posting infringing content, the volume of trading of his virtual gallery NFT with 120,000 US dollars diminished to zero after 30 days and was ultimately forcibly reclaimed by the system (in line with Article 7.3 of the platform’s terms). The “Digital Services Act” of the EU stipulates that Status AI must provide a chain of proof of the offenses to the regulator within 24 hours after a ban (±0.001% evidence storage precision by hash evidence). User appeals are successful 23% of the time (average 15% industry average) but the loop of appeals can last up to 14 working days.
Strict compliance with data and privacy. The chat history, suspended users’ biometric characteristics (voiceprints), and other details will be encrypted and isolated (AES-256 standard), storage period minimized to 30 days (statutory limit of 90 days), and deleted irretrievably on expiry (destruction audit rate of 99.9%). In 2024, a case illustrated that an enterprise account was being blocked due to data leakage and resulting anonymization of its customer database (50,000 records) (at an information desensitization rate of 98%), as well as direct loss of revenue of approximately 2.2 million US dollars. However, according to the GDPR, users will be able to pay 450 euros to receive a copy of their data (processing time: 7 days), whereas infringing content (e.g., infringing material) will be filtered (blocking rate: 99.7%).
The economic impact is profound. The content income of blocked creators (e.g., commission on virtual goods sales) will be frozen and the unwithdrawn balance confiscated pursuant to agreement (up to 100%). For instance, a number one producer was banned for illegal promotion. All the $87,000 in earnings that was not held back from his account was withdrawn, and the partner brand asked for a penalty of $150,000. The Status AI credit scoring system will synchronize the ban records with third-party platforms (payment gateways), resulting in the lowering of the credit card limit of the user (by an average of 34%) or the termination of business cooperation (with a probability of 67%).
Technical limitations and countermeasures. If a banned user attempts to open a new account, the device fingerprint (e.g., MAC address, GPU model) and IP will be labeled (with 99.4% accuracy rate), and there’s an 89% likelihood of triggering a second ban. Dark web prices in 2023 reveal ban-bypassing hacking software (e.g., virtual device ID generators) can cost as much as $12,000 per package but last on average only 6 hours (as the Status AI AI risk control model updates the feature library every 5 minutes).
Legal risks escalate. If the ban pertains to criminal activities (e.g., hate speech, fraud), Status AI will export the user logs to law enforcement agencies (response time ≤1 hour). In 2024, a user in Germany was suspended for six months and fined 23,000 euros for posting content about the Nazis. The user account data was accepted as electronic proof (with judicial estimation error rate of ≤0.05%). Business users who are suspended for data misuse may be imposed a fine of 4% of their global turnover (the maximum rate of the EU’s General Data Protection Regulation).
Path and fee of recovery. Users can request unblocking through a compliance check (at a cost of $1,200), and users have to submit a legal opinion and a report on correction of content (with a pass rate of 12%). After the account is opened, it has to go through a 30-day “observation period” (with a 50% function limit), and the credit score will only be returned to 65% of the original. According to ABI Research, among the users that were not blocked in 2023, only 9% restored the highest traffic (e.g., the average daily interaction from 10,000 times to 800 times), and the percentage of business cooperation restoration was below 5%.