By Key Points
- Worldcoin Kenya ruling triggers 10% WLD crash after court order
- Kenya High Court bans Worldcoin’s biometric data collection
- Court orders deletion of all previously collected data
- Victory for digital rights and privacy advocates
- WLD token drops nearly 10% after ruling
Worldcoin (WLD), Sam Altman’s ambitious crypto-identity project, has hit a major roadblock. Kenya’s High Court ruled that Worldcoin’s biometric data collection violated citizens’ privacy rights and ordered the immediate deletion of all previously gathered data. This landmark decision has not only shaken Worldcoin’s operations in Kenya but also caused WLD’s price to tumble nearly 10%.
The court’s ruling followed a case filed by the Katiba Institute, a local organization promoting constitutional rights. Justice Aburili Roselyne declared that Worldcoin had processed biometric data—including iris scans—without proper consent or a valid Data Protection Impact Assessment (DPIA), violating Kenya’s Data Protection Act, 2019.
JUDGMENT: High Court safeguards the right to privacy
Today, 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… https://t.co/7SisPV7ZCd
— Katiba Institute (@katibainstitute) May 5, 2025
“All biometric data collected must be permanently deleted within seven days,” the judge ordered. The Data Protection Commissioner will oversee the enforcement of this ruling.
The case highlighted that Worldcoin incentivized Kenyans by offering $50 worth of WLD tokens in exchange for their biometric data. Critics, including parliament majority leader Kimani Ichung’wah, argued that this inducement compromised user consent and questioned why data collection banned in the U.S. was allowed in Kenya.
High Court orders Worldcoin to delete biometric data collected in Kenya within 7 days pic.twitter.com/IZ2tfrSzzA
— Kenyans.co.ke (@Kenyans) May 5, 2025
This decision is celebrated as a major win for digital rights advocates who stress the importance of upholding privacy, even in the age of blockchain and decentralized identity systems.
For investors following regulatory shifts, this ruling adds to a growing list of crypto legal battles worldwide, similar to recent scrutiny over Bitcoin and the FOMC’s influence and other high-profile cases.
High Court orders Worldcoin to delete all biometric data of Kenyans unlawfully collected using its orb, under the supervision of the Office of the Data Protection Commissioner pic.twitter.com/A6AiSSr1HD
— Citizen TV Kenya (@citizentvkenya) May 5, 2025
Market reacts sharply as WLD price drops
The legal blow in Kenya swiftly impacted investor confidence. Worldcoin’s native token, WLD, plunged almost 10%, trading at $0.88 at the time of reporting.
This ruling could have wider consequences for Worldcoin’s operations in other countries. Similar regulatory actions have already occurred in Indonesia, where authorities suspended Worldcoin’s activities over privacy concerns.
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
Despite setbacks abroad, Worldcoin continues expanding in the United States, recently launching in cities like Atlanta, Los Angeles, and San Francisco. However, the Kenyan ruling may inspire more legal challenges in other jurisdictions where Worldcoin operates.
Digital rights groups worldwide are hailing the Kenyan court’s decision as a critical reminder that tech innovations must align with fundamental privacy rights. Whether Worldcoin can adapt its practices to meet global data protection standards remains uncertain.
The owner of Worldcoin, Sam Altman, is banned from collecting this data in his home country, the US why do we allow him in Kenya – Ichung’wah pic.twitter.com/XDkNR4HXrx
— Kenyans.co.ke (@Kenyans) August 2, 2023
Investors should also be mindful of broader market volatility, especially given ongoing developments like the Ethereum Pectra upgrade and recent concerns about XRP price suppression.
Broader concerns around data privacy and crypto security
Worldcoin’s data collection controversy is part of a wider debate about privacy in the crypto space. While blockchain promises transparency, the methods used by some projects to gather personal data have sparked global backlash.
Worldcoin (WLD) price performance. Source: Techtoken
This year alone, authorities have highlighted several privacy and security issues in the crypto industry. Reports of crypto phishing scams surging in April 2025 have added to investor concerns. Meanwhile, regulatory crackdowns have become more frequent, with recent actions even targeting major industry figures like Justin Sun and First Digital Trust.
As regulators increase their oversight, crypto projects will need to navigate not only market pressures but also complex legal and privacy challenges.
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