Sam Altman’s World project (formerly known as Worldcoin) is facing heightened legal and compliance battles. In a recent development, a Kenyan court ruled against the project’s data collection practices, citing violation of user privacy rights. This move marks a significant step for user data protection, especially in the crypto sector.
Amidst the recent development in Kenya, the World token has taken a huge blow. Data shows that the price of the WLD coin has dropped by over 4% over the last 24 hours. However, the decision by the court demonstrates a strong stance against user exploitation by crypto projects.
Kenyan Judge Rules Against Sam Altman’s World Project
According to a report by the Kenyan Section of the International Commission of Jurists (ICJ Kenya), the High Court of Kenya recently issued a ruling suspending data collection operations by the World Foundation. Additionally, the court ordered the deletion of data previously collected.
WorldCoin Case Judgment: The Court affirmed that WorldCoin commenced data collection without valid consent from the Office of the Data Protection Commissioner (ODPC) and without conducting the required DPIA, in breach of Sections 25, 26, 29, 30, and 31 of the Data Protection Act,… pic.twitter.com/JwmwTn5CJd
— ICJ Kenya (@ICJKenya) May 5, 2025
As per the ruling delivered on Monday May 5, Justice Aburili R. Ekirapa cited violation of the country’s Data Protection Act, 2019. The ruling came after the court determined that World and its local agents failed to seek proper licensing and consent to allow it to collect biometric data from the citizens.
Following this ruling, World is thus prohibited from processing or collecting more biometric data, including iris and facial scans, from Kenyans. According to a post by the Katiba Institute (an institute aiding in implementation of the Kenyan constitution), the court also issued an order of Certiorari to the World Foundation. This order suppresses World’s process of obtaining user consent through issuance of the WLD token.
Furthermore, Katiba institute also confirmed that the High Court of Kenya issued an order of Mandamus demanding World to delete all biometric data that was unlawfully collected. The foundation is required to do so in the next seven days. Kenya’s Data Protection Commissioner is set to supervise the deletion process.
Emphasize on Compliance by Crypto Projects
The recent ruling against Worldcoin comes almost two years after the Katiba Institute filed a lawsuit against the firm. The initial filing was made back in August 2023. However, the verdict serves as a clear message that crypto projects need to uphold user data protection and privacy rights. Not only in Kenya, but also across the globe.
“The judgment rightly underscores that even in the digital age, constitutional rights, especially the right to privacy under Article 31 of the Constitution must be upheld,” ICJ Kenya wrote.
Besides the verdict in Kenya, Worldcoin has also faced legal blows elsewhere. According to a report on May 4, 2025, the Indonesian Ministry of Communication and Digital froze Worldcoin and WorldID licenses to operate in the country.
The freezing resulted from alleged violation of Indonesia’s electronic system implementation provisions. This series of legal battles involving Sam Altman’s World project depicts the ongoing need to address legal and compliance risks.
WLD Dips by Over 4% Amidst Kenyan Court Ruling
Following the Kenya court ruling against World, investors have responded negatively making the WLD token dip. Coinmarketcap data as of the time of this writing showed that Worldcoin was trading at $0.8701. This price depicted a 4.27% dip over the last 24 hours.
If the World Foundation fails to address the ongoing legal and compliance issues, the WLD token will continue to suffer. It’s thus crucial for the project to ensure investors do not lose confidence in the project by resolving the ongoing issues.
