Worldcoin (WLD), the cryptocurrency co-founded by OpenAI CEO Sam Altman, faces a price dip as the South Korean authorities launch an investigation on the project citing potential violations of local privacy regulations.
Notably, this recent development comes days after billionaire Elon Musk, the owner of social-media platform X (formerly Twitter) filed a lawsuit against OpenAI and CEO Sam Altman for breach of contract.
Musk accused them of breaching contractual agreements made when he helped found the company in 2015. Following the lawsuit, Worldcoin (WLD), fell by about 5% to $7.53.
Worldcoin Faces Scrutiny in South Korea
In a recent development, the South Korean authorities have initiated an investigation into Worldcoin citing privacy concerns.
In an official statement issued on March 4, South Korea’s Personal Information Protection Commission (PIPC), the national data protection agency, announced that it has launched an investigation into Worldcoin following complaints about the project’s collection of personal information, particularly scanning people’s iris in exchange for cryptocurrency.
The authorities claim that as of Monday, Worldcoin had collected information on people’s irises and facial features at ten different locations around the nation. Therefore, the investigation focuses on how the project handles personal data, including information collection and processing methods as well as any possible data transfers outside of South Korea.
Furthermore, the watchdog stated that it will take appropriate action if any violations of local privacy laws are discovered. Meanwhile, news of the investigation saw WLD trade at $7.9 at press time, representing a 0.49% increase in the last 24 hours.
Worldcoin Previous Probes
Launched in July 2023, Worldcoin’s core offering is the World ID, which is a digital passport that proves the holder is a real human. Despite its innovative approach to identity verification, the project has faced significant backlash due to its data collection practices in countries including France, India, Brazil, and Kenya.
In 2023, the Argentina authorities launched an investigation into the project’s collection, storage, and use of data to ensure it complies with the national laws. Similarly, Hong Kong’s Office of the Privacy Commissioner for Personal Data initiated an investigation earlier this year on six premises associated with Worldcoin in the country over potential severe risks to personal data privacy.
Last year, Korean authorities fined OpenAI after discovering that personal information belonging to 687 South Korean citizens was leaked through ChatGPT.
