Worldcoin, the cryptocurrency firm backed by Sam Altman, is experiencing serious legal challenges on multiple fronts. On May 5, 2025, the Kenyan High Court ruled that Worldcoin violated Data Protection Act 2019 restrictions. According to Justice Aburili Roselyn, the Worldcoin Foundation must remove all biometric data received from Kenyan people within seven days.
Worldcoin got illegal consent via its exchange mechanism, which provided bitcoin in exchange for iris and facial scans. A legal challenge to Worldcoin began when the Nairobi-based Katiba Institute launched a complaint in Kenyan courts. The Data Protection Commissioner's Office will oversee data erasure activities and ensure compliance through inspections.
Worldcoin paid customers up to 7,000 Kenyan shillings in digital tokens once they provided biometric information. Lawmakers and critics filed many complaints because the practice exposed serious data privacy and security risks.
The Indonesian Ministry of Communications and Digital also halted Worldcoin operations due to a failure to meet regulatory norms. According to government authorities, Worldcoin affiliate PT Terang Bulan Abadi operated without the required certification as an Electronic System Operator.
PT Sandina Abadi Nusantara, a local partner, allegedly gave false details concerning its corporate status. Law enforcement declared these practices to be substantial criminal offences, raising worries about the potential of identity theft. According to Komdigi, citizens must report unlicensed digital services to authorities in order to maintain Indonesia's digital ecosystem.
Worldcoin's use of iris-scanning "Orbs" to distribute money has prompted arguments over user privacy and permissions. WorldCoin's disruption, combined with increasing regulatory issues, exacerbates the project's troubles in numerous governing jurisdictions.
The legal issues in Kenya and Indonesia caused Worldcoin's WLD token to fall from $0.96 to $0.88. Following volume assessments, open interest fell 5% to $219 million. The figures show that investor trust has dwindled as regulatory barriers rise. Worldcoin's WLD ID service began in America prior to the Coinbase trading launch, while legal concerns arose in Kenya and Indonesia. Worldcoin experienced global implementation challenges because to legislative constraints that hampered the project's global expansion.