What does the AccreditedID zero-knowledge proof actually reveal to a verifier?

Only a single Boolean - that at least one SEC Rule 506(c) accreditation threshold is satisfied. It does not reveal which threshold, the user's precise net worth, or the user's precise income.

Which SEC Rule 506(c) thresholds does the circuit encode?

Net worth excluding primary residence at or above one million dollars, individual income at or above two hundred thousand dollars for the last two consecutive years, and joint income with a spouse at or above three hundred thousand dollars for the last two consecutive years, expressed as a disjunction so satisfying any one suffices.

Who examines the underlying financial evidence before the proof is issued?

A trusted issuer examines the user's submitted bank statements, brokerage statements, tax forms, and attorney or CPA verification letters before the zero-knowledge proof is constructed, preserving the issuer's good-faith Rule 506(c) reasonable-steps verification obligation.

Can the same AccreditedID receipt be reused across multiple private placements?

Yes. The sealed receipt is portable - each consumer independently verifies the Byzantine Fault-Tolerant quorum signature and the zero-knowledge proof against public parameters, without needing to see or store the underlying financial figures.

AccreditedID with ZK Source-of-Funds Threshold Proof

Executive Summary

AccreditedID produces a verifiable credential attesting a user's accredited-investor status under SEC Rule 506(c) without revealing the user's underlying financial data to the party relying on it. A trusted issuer examines the user's net-worth or income evidence and, if a threshold is met, issues a sealed receipt incorporating a zero-knowledge proof that at least one Rule 506(c) accreditation threshold is satisfied - without revealing which threshold, or the precise figures behind it.

The receipt is signed by a Byzantine Fault-Tolerant (BFT) validator quorum and is portable: any consumer (private-placement issuer, broker-dealer) can independently verify the quorum signature and the zero-knowledge proof against public parameters, learning only the accreditation Boolean.

Core Innovation: A trusted-issuer accreditation attestation, a zero-knowledge threshold-disjunction proof, and BFT-quorum signing combine into a single Rule-506(c)-compliant, reusable verification product - preserving the issuer's good-faith verification obligation while disclosing nothing about the investor's actual finances to anyone downstream.

Problem Statement

SEC Rule 506(c) permits general solicitation of unregistered securities offerings provided the issuer takes reasonable steps to verify accredited-investor status. Existing verification methods require the investor to disclose detailed financial information - account statements, tax returns, attorney or CPA letters - directly to each issuer or third-party verifier the investor deals with, creating both privacy exposure and repetitive disclosure friction.

$2T+

Raised via Regulation D private placements in a recent year (SEC data) - the market this verification burden sits on top of

~200 bytes

Size of a Groth16 zero-knowledge proof, versus a full financial-disclosure package

Precise financial figures disclosed to any downstream consumer of the sealed receipt

Why Existing Solutions Are Insufficient

Direct disclosure to each issuer: an investor pursuing multiple private placements repeats detailed financial disclosure to each one; every issuer must separately store and protect the disclosed data.
Third-party verification services: reduce repetition but still expose precise financial figures to the verifier, who becomes a concentrated target for breach.
Self-certification checkboxes: satisfy no meaningful "reasonable steps" standard and provide issuers no defensible audit trail.

Technical Architecture

Evidence Intake & Threshold Determination

The user submits financial evidence - bank statements, brokerage statements, prior-year tax forms, attorney or CPA verification letters - through an authenticated session. An examiner (trained personnel, optionally augmented by deterministic-drift-bounded language-model extraction) parses the evidence and evaluates it against the accreditation thresholds:

Threshold	Rule 506(c) Basis
Net worth excluding primary residence ≥ $1,000,000	Individual net-worth test
Individual income ≥ $200,000 for the last two consecutive years	Individual income test
Joint income with spouse ≥ $300,000 for the last two consecutive years	Joint income test
Entity-based / professional-based categories	Additional Rule 506(c) categories, as applicable

Zero-Knowledge Disjunction Proof

A circuit encodes the disjunction "net worth ≥ threshold OR individual income ≥ threshold OR joint income ≥ threshold." The user's actual figures are supplied as a private witness; the threshold parameters are public input. A Groth16 proof (alternatively Plonk or Bulletproofs) is generated - approximately 200 bytes, constant-time to verify - such that a verifier learns only that at least one disjunct is satisfied, never which one, never the underlying figures.

Sealed Receipt & Verification

The receipt bundles the accreditation Boolean, the zero-knowledge proof, an examination timestamp, a user identity commitment, and a circuit identifier, all signed by a validator quorum at a 70% signing threshold. Consumers fetch the quorum's public-key set and the published verifier program for the circuit identifier, verify the signature and the proof, and accept or reject - never storing precise financial data. Receipts carry a freshness timestamp; consumers may reject receipts older than a configured age (commonly 90 days).

Money Passport Integration

AccreditedID is designed to compose as one constituent of a broader identity bundle: alongside Proof of Funds, Source of Funds, and Income Verification constituents under a single BFT-quorum signature, each with independent freshness binding. The threshold-determination module records internally which specific threshold was satisfied for audit purposes, while the zero-knowledge proof continues to externally reveal only the disjunctive Boolean - internal auditability and external privacy are enforced independently, by different layers of the same system.

Prior Art Differentiation

Approach	Trusted-issuer evidence review?	Zero-knowledge proof?	Portable across issuers?	Cryptographically quorum-signed?
Direct disclosure to each issuer	Yes	No	No	No
Third-party verification services	Yes	No	Partial	No
Self-certification checkbox	No	No	N/A	No
JIL AccreditedID	Yes	Yes	Yes	Yes

Patent Claim

Independent Claim 111: An accredited-investor verification system, comprising: an evidence intake module configured to accept from a user financial evidence comprising bank statements, brokerage statements, prior-year tax forms, and attorney or accountant verification letters; an evidence examiner configured to extract structured financial figures from the submitted evidence; a threshold-determination module configured to evaluate the extracted figures against a plurality of accreditation thresholds under SEC Rule 506(c); a zero-knowledge proof generator configured to construct a proof over a circuit encoding a disjunction of the accreditation thresholds, the user's actual figures supplied as private witness and the threshold parameters supplied as public input, the proof revealing that at least one threshold is satisfied without revealing which threshold or the underlying figures; and a Byzantine Fault-Tolerant signing module configured to sign a sealed receipt comprising an accreditation Boolean, the zero-knowledge proof, and an examination timestamp, the receipt being portable and independently verifiable by any consumer holding the signing quorum's public-key set.