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Court in Kenya Orders Deletion of Biometric User Data from Sam Altman's Cryptocurrency Project

Global pressure mounts against Sam Altman's startup, as Kenya and Indonesia impose restrictions this month, adding to its growing international scrutiny.

Ditching Digital Peepers: The Kenyan High Court Orders Worldcoin to Purge Biometric Data

Court in Kenya Orders Deletion of Biometric User Data from Sam Altman's Cryptocurrency Project

In a monumental blow to Worldcoin, a crypto-powered identity project helmed by Sam Altman and Alex Blania, a Kenyan court has ordered the eradication of all biometric data culled from the country's citizens. This verdict, stemming from Worldcoin's non-compliance with Kenya's data protection laws, has far-reaching implications for privacy, tech giants, and global scrutiny.

Court's Gavel Slams Down on Worldcoin

The Nairobi High Court declared that Worldcoin, formerly known as Worldcoin, and its agents dawdled in securing valid consent from the Office of the Data Protection Commissioner (ODPC). Furthermore, the court found that these entities used crypto-induced incentives to gather sensitive biometric data unlawfully, infringing upon the fundamental right to privacy under Kenya's constitution 13.

Joshua Malidzo Nyawa, counsel for the Katiba Institute, which brought the lawsuit, celebrated this decision, stating, "This ruling bolsters the protection of the right to privacy in Kenya and underscores the importance of complying with data protection regulations." 1

Bye, Bye, Biometrics – Word to the Wise

The court ordered Worldcoin and its agents to wipe clean all accumulated biometric data under ODPC supervision within a week 1. Moreover, it prohibited the company from embarking on further data collection until legal requirements are fulfilled.

A Rocket-Propelled Stumble Back

This decision comes barely a year after a flurry of controversy surrounding Worldcoin’s activities in Kenya, encompassing accusations of criminality from an official 1. Although a ban was lifted after a police investigation in June 2024, Monday's ruling constitutes a heavy setback to the company's efforts to restore its market credibility 1.

Skeptical Watchdogs and the Ripple Effect

On a global scale, Worldcoin has been under the microscope in various countries, due to concerns about data privacy. Indonesia has temporarily halted the company's operations 3; enforcement actions have taken place in Hong Kong, Germany, and Brazil; and watchdogs in Indonesia, Hong Kong, Germany, and Brazil have expressed concerns. 1

A Fader in the Global Market, a Glow in the U.S.?

Amidst losing ground in international markets, Worldcoin is determined to flourish in the United States. It has debuted in six American cities – Atlanta, Austin, Los Angeles, Miami, Nashville, and San Francisco – where locals can now claim WLD tokens in exchange for registering 1.

While enabling individuals to acquire digital identities and cryptocurrency, Worldcoin has faced doubts about its privacy claims, as it uses iris-scanning orbs to issue users digital IDs. Worldcoin officials have touted the "privacy-first" nature of World ID, emphasizing local data storage and cryptographic safeguards. However, these assertions have not dampened concerns about data misuse and accountability 1.

As of press time, WLD was trading at $0.86, a 6.8% decline 1.

Edited by Sebastian Sinclair

Daily Debrief Newsletter

  1. The Kenyan court ruling against Worldcoin, a crypto-powered identity project, emphasizes the importance of complying with data protection regulations, as counsel for the Katiba Institute, Joshua Malidzo Nyawa, stated [1].
  2. The Nairobi High Court ordered Worldcoin to eradicate all biometric data culled from Kenyan citizens, found that the entities gathered data unlawfully using crypto-induced incentives, and prohibited further data collection until legal requirements are fulfilled [1].
  3. Barely a year after controversies in Kenya, Monday's ruling constituted a heavy setback to Worldcoin's efforts to restore its market credibility [1].
  4. Concerns about data privacy have led to enforcement actions against Worldcoin in Indonesia, Hong Kong, Germany, and Brazil, and temporary halt of its operations in Indonesia [1].
Global scrutiny intensifies on Sam Altman's startup as Kenya and Indonesia implement restrictions this month.

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