Worldcoin hit with legal blow as Kenya court orders biometric data purge

The High Court of Kenya has delivered a landmark judgement ordering Worldcoin to delete all biometric data collected from citizens within seven days for contravening the Data Protection Act, 2019. The court ruling was handed down by Lady Justice Aburili Roselyne in open court on May 5, 2025. Katiba Institute @katibainstitute · Follow JUDGMENT: High Court safeguards the right to privacyToday, Lady Justice Aburili Roselyne has allowed our Judicial Review Application, where we challenged the collection, processing, and transfer of iris and facial images (biometric data)using the World Coin App and the Orb 1:42 PM · May 5, 2025 93 Reply Copy link Read 3 replies Court finds Worldcoin gained consent through inducements The judgment compels the Worldcoin Foundation and its agents to permanently delete iris and facial scans gathered across Kenya. The deletion process must be carried out under the strict supervision of the Office of the Data Protection Commissioner (ODPC). The court found that Worldcoin failed to conduct a mandatory Data Protection Impact Assessment as required under section 31 of the Data Protection Act, 2019. Judges determined that the consent obtained through inducements of cryptocurrency rewards did not meet legal standards of free and informed consent. The case was brought by the Katiba Institute, whose counsel Joshua Malidzo Nyawa described the ruling as “a win for the right to privacy in Kenya.” The judgment underscores the constitutional right to privacy and sets a precedent for digital data protection enforcement. Worldcoin has faced global backlash In a related move, Indonesia’s Ministry of Communication and Digital suspended Worldcoin’s operating permit on May 4, citing registration violations and unapproved use of another company’s license. Alexander Sabar, Director General for Digital Space Supervision, warned that the preventive suspension aimed to protect public safety amid potential digital risks. Indonesia’s Ministry of Communication and Digital will summon local operators PT Terang Bulan Abadi and PT Sandina Abadi Nusantara for clarification of alleged permit abuses. Notably, these successive regulatory actions in Kenya and Indonesia follow prior data protection interventions by authorities in Spain, Portugal and Brazil, where Brazil’s ANPD banned World Chain from offering crypto rewards when collecting iris data . Spain’s AEPD ordered a temporary block of Worldcoin’s biometric data collection in March 2024 over deficiencies in consent withdrawal, and Portugal’s CNPD imposed a 90-day halt to iris scans that same month. Governments in France, Germany, and South Korea have similarly launched probes into the project’s privacy practices since mid-2023. WLD token price under immense pressure The mounting legal scrutiny has triggered a sharp market reaction, with the WLD token plunging 7% in 24 hours and more than 22% over the past week to below $1. At press time, the WLD token traded at $0.8948, according to CoinMarketCap data . Read more: Worldcoin’s $1 target in limbo as bears curtail bull run Trading volume surged by over 60% as investors reacted to the twin suspensions and weighed the project’s future viability. Notably, while the trading volume soars, Worldcoin’s market capitalisation has retracted alongside the price slump, reflecting heightened apprehension among stakeholders. Despite its ambitious goal of establishing a universal digital identity via iris-scanning “Orb” devices , the World Chain project has faced repeated accusations of over-centralisation of sensitive personal data. However, Worldcoin raised over $1 billion from notable investors, including Andreessen Horowitz, Reid Hoffman, and Coinbase Ventures, illustrating the contention between strong backing and rigorous oversight. Critics argue that the reliance on iris biometrics exposes participants to irreversible privacy risks if data safeguards prove insufficient. Supporters, however, contend that encryption and decentralisation mechanisms mitigate such dangers, but regulatory mandates now demand transparent compliance. As Worldcoin navigates these legal hurdles, the company must reconcile its expansion strategy with evolving global data protection regimes. For investors and users alike, the ruling represents both a cautionary tale and a potential turning point in the governance of personal data in the crypto era. The post Worldcoin hit with legal blow as Kenya court orders biometric data purge appeared first on Invezz

Source: Invezz