Breaking: Worldcoin (WLD) in Deep Trouble As Kenya Declares Activities Illegal After Indonesia Ban

ChatGPT founder Sam Altman’s crypto project Worldcoin (WLD) is in troubled waters. A Kenyan High Court has declared the activities of the Sam Altman’s Worldcoin Foundation illegal and ordered the deletion of biometric data collected from Kenyans. The ruling, issued on May 5, 2025, comes just one day after Indonesia suspended the project for regulatory violations.

Kenya Court Orders Worldcoin Data Deletion Within Seven Days

Lady Justice Aburili Roselyne delivered three orders against Sam Altman’s Worldcoin Foundation, citing violations of Kenya’s Data Protection Act, 2019. The Court directed the foundation to delete all iris and facial biometric data collected from Kenyans. The Data Protection Commissioner has been tasked with overseeing the process, which must be completed within seven days.

The Court ruled that the data was collected without a valid Data Protection Impact Assessment. It also found the consent was not lawful, as it was obtained through financial inducements involving Worldcoin’s cryptocurrency. The ruling stated,

“An order of Mandamus compelling the Worldcoin Foundation and its agents to permanently delete (under the supervision of the Data Protection Commissioner) within seven days any biometric data collected in Kenya.”

Another order prohibited the foundation and its agents from collecting, processing, or handling any biometric data in the country. A third order canceled any prior decisions allowing the company to collect or process such data. However, despite this sanction, Worldcoin has recently made a bullish move by introducing WLD ID in US amid Coinbase’s plan to list the token.

Legal Challenge Led by Katiba Institute

The Court’s decision follows a legal challenge filed by the Katiba Institute, a Kenyan civil society organization. The group questioned the legality of Sam Altman’s Worldcoin data collection practices using its digital app and biometric Orb devices. They argued that the foundation failed to comply with privacy protections outlined in the national law.

Following the ruling, the Katiba Institute stated,

“Today, Lady Justice Aburili Roselyne has allowed our Judicial Review Application, where we challenged the collection, processing, and transfer of iris and facial images using the Worldcoin App and the Orb against the Worldcoin Foundation.”

Worldcoin (WLD) had begun operations in Nairobi in early 2023, offering cryptocurrency worth Ksh7,000 in exchange for biometric data. The government halted the registration process after large crowds gathered at public sites, raising concerns over security and privacy.

Worldcoin Also Faces Suspension in Indonesia

Just hours before the Kenyan ruling, Indonesia’s Ministry of Communications and Digital (Komdigi) suspended Worldcoin’s registration. Officials cited suspicious activity and the use of unauthorized legal entities for digital services despite plans to integrate Circle’s USDC and  CCTP V2.

Following the rulings in both Kenya and Indonesia, the price of the Worldcoin token (WLD) dropped by over 6% in 24 hours. At the time of reporting, Worldcoin (WLD) price was trading at $0.8816 after hitting a 24-hour high of $0.9627. In addition, the WLD open interest fell by 5.15%, down to $219.42 million.

Komdigi said the Worldcoin-related firm, PT Terang Bulan Abadi, was operating without a valid Electronic System Operator Certificate. It also found that another local partner, PT Sandina Abadi Nusantara, was allegedly involved in legal misrepresentation. According to Komdigi,

“Noncompliance with registration obligations and the use of the identity of another legal entity… is a serious violation.”

The ministry confirmed it would summon both local entities for clarification and called on citizens to report unregistered digital service providers. Alexander Sabar, director general for digital supervision, said, “We invite the public to help maintain a safe and trusted digital space for all citizens.”