Worldcoin (WLD), the digital identity and cryptocurrency project backed by OpenAI CEO Sam Altman, suffered a significant legal and financial blow this week. Kenya’s High Court has ruled that Worldcoin violated the constitutional privacy rights of Kenyan citizens, ordering the immediate deletion of all biometric data collected from users within the country.

The court’s decision comes after nearly two years of legal proceedings initiated by the Katiba Institute, a local constitutional advocacy group. In a judgment issued on May 6, 2025, Justice Aburili Roselyne granted a judicial review application, declaring that Worldcoin’s data collection methods breached Kenya’s Data Protection Act, 2019.

The ruling prohibits the Worldcoin Foundation and its partners from further processing, collecting, or dealing in biometric data in the country. More notably, the court ordered that all biometric information previously gathered must be deleted within seven days. The Office of the Data Protection Commissioner (ODPC) will oversee the enforcement of this directive.

According to court documents, Worldcoin had failed to obtain legitimate consent and had bypassed the required Data Protection Impact Assessment (DPIA) prior to conducting its biometric registration. The project offered users approximately $50 worth of WLD tokens in exchange for scanning their irises using a device called the Orb — a process that has raised controversy and criticism across multiple jurisdictions.

The Katiba Institute successfully argued that this monetary incentive constituted an inducement, thus undermining the voluntariness and validity of user consent. Constitutional lawyer Joshua Malidzo Nyawa led the legal challenge and emphasized that the approach failed to meet the legal standards set by Kenya’s data protection laws.

The ruling has been welcomed by digital rights groups and legal observers as a landmark victory in the battle for personal data sovereignty. ICJ Kenya, a prominent rights organization, praised the judgment, stating it reaffirmed the country’s commitment to protecting constitutional rights in the digital age, particularly the right to privacy.

The court’s decision is likely to have broader implications beyond Kenya. In recent months, other nations including Indonesia have halted Worldcoin’s activities over similar concerns. Lawmakers around the globe have begun scrutinizing the project’s model, which relies on harvesting sensitive biometric information in return for cryptocurrency.

Kenyan political figures have also criticized the project. National Assembly Majority Leader Kimani Ichung’wah questioned why a program restricted in its founder’s home country was allowed to operate freely in Kenya. “The owner of Worldcoin, Sam Altman, is banned from collecting this data in the US. Why do we allow him in Kenya?” he asked during a recent parliamentary debate.

Despite this mounting opposition, Worldcoin continues to expand its footprint elsewhere. In the United States, the project has introduced operations in six major cities including Los Angeles, Atlanta, and San Francisco. These developments suggest that while the backlash may intensify in some regions, Worldcoin’s global ambitions remain undeterred.

Still, the immediate impact on investor sentiment has been severe. Following news of the court ruling, Worldcoin’s native token, WLD, plummeted by nearly 10% within 24 hours. As of writing, the token was trading around $0.88, reflecting a sharp decline from its recent highs. The drop underscores investor anxiety around growing regulatory headwinds and potential legal liabilities tied to the project’s data practices.

For a platform built on the promise of a decentralized and user-controlled identity system, this ruling poses not only legal hurdles but also reputational challenges. With regulatory scrutiny increasing and global watchdogs tightening data governance laws, Worldcoin now faces a critical test in proving it can operate ethically and lawfully across diverse jurisdictions.

Whether the Kenya decision becomes a blueprint for further legal actions around the world remains to be seen. But one thing is clear: the road ahead for Worldcoin is becoming increasingly difficult to navigate.