I really hate how big companies get paralyzed over problems like this. A small group would have solved this the same day the realized it was an issue.
Because then we will be having this same conversation about Twitter mismanagement of green checks. Identity is not the problem. What bigots, racist, nazis and political actors are demanding is status, not recognition. Milo followers know he is who he say he is.
Thus, the blue check slowly became something different than intended, and realizing this and having a second check for that ("blue is only for verification!") would have solved the problem.
Keep the Verified checkmark, but have a separate internal flag that designates a user as a VIT. Most of the time someone will be both. But in cases like Milo, you can take away the VIT, but keep the Verified checkmark.
Problem solved.