> Addresses are classified as either verified or flagged on-chain through soulbound NFTs. A type of NFT that has no trade value as it cannot be sold. Once minted, it is stuck to the given address.

This should probably be called an "addressbound NFT". Is there anything that would prompt it to follow a bad user to a new address or wallet?

I'm mostly cryptocurrency negative, and have never used any cryptocurrency. I presume you've thought of a variety of means your tool can be abused and have taken action to ameliorate that abuse in advance?