The auction is to put ur client in a competition and to make more profit. Its a Eth token strategie.

The escrow is usless. the people who create the keys are those who own the keys even if they lend the key after.

So if people want non kyc bitcoin they have to leave an email address not token auth can be made, no solution can be found outside of an email ?
is easy this way. 
ur solution ask a lot of stuff and no verrification can be made outside of your team. 
For me its a pure scam.