Over the past few months, Worldcoin (WLD), the open-source project led by Sam Altman, has encountered growing legal issues. Portugal and Spain have taken action against Worldcoin’s biometric data collection methods, while Argentina has gone a step further by filing an indictment against the project due to reportedly abusive terms in user contracts.
Worldcoin Faces Legal Scrutiny In Buenos Aires
The government of Buenos Aires has discovered inconsistencies between Worldcoin’s stated methods for managing data and the results of on-site investigations. These discrepancies have sparked worries regarding how biometric information is being kept and erased, as well as potential violations of users’ privacy rights.
The provincial authority overseeing production, science, and technological advancement in Buenos Aires announced that they have initiated legal action against Worldcoin based on findings from their consumer protection agency’s probe.
During the examination, it was found that the business’s joining agreements contained harmful provisions, potentially contravening the National Consumer Protection Law.
Ariel Aguilar, the Undersecretary overseeing Commercial Affairs and Investment Attraction in the province, voiced worries about the unclear data handling practices of Worldcoin.
Aguilar raised concerns about the handling of biometric information, specifically whether it was being kept on record or erased right away. He also inquired about the presence of databases holding personal data of Argentine citizens and the intricacies of the overall system’s agreements and functions.
During their inspections, the province discovered numerous breaches in the adhesion contracts. Among these infractions were the “Terms of Use,” “Privacy Policy,” and “Data Consent Agreement.”
Significantly, the business neglected to put up age restrictions signage for using their service, which could result in the collection of personal information from children under 18.
Contradictions In Worldcoin’s Handling Of Biometric Data
Discrepancies existed regarding how the company used, safeguarded, and kept biometric data taken from Argentine citizens’ faces and eyes. It seems that this sensitive information is actually being held in Brazilian storage.
Furthermore, harmful provisions were found in the contract enabling the business to discontinue the service without offering repairs or compensation instead.
The contracts were reportedly requiring users to give up group lawsuits and submit to the jurisdiction of foreign courts, particularly those in the Cayman Islands. Disputes were to be settled through arbitration in California, USA. This arrangement allegedly contradicts Argentina’s Civil and Commercial Code, and Worldcoin could face penalties worth up to 1 billion pesos or $1.2 million as a result.
In different parts of Buenos Aires, the company conducted its business operations. Using its advanced Orb technology, Worldcoin gathered people’s personal biometric information, including iris and facial scans, at these sites.
As a reward, users received access to the World App financial tool on their mobile devices, along with some cryptocurrency in the form of Worldcoin’s native token, WLD.
Unexpected Upswing
In spite of recent legal challenges, such as the ongoing investigation in Argentina, the Worldcoin protocol’s token, WLD, has unexpectedly risen by 2.6% in the last 24 hours and is now priced at $4.80.
When looking at important statistics, it’s clear that WLD has been affected by the broader market adjustment. According to CoinGecko, WLD’s trading volume in the last 24 hours was $319,113,250, which represents a 7.10% decrease compared to the day before.
Furthermore, the price of WLD has dropped by more than 58%, or approximately 58%, from its peak of $11.74, which it hit on March 10th.
In addition, the value of the token’s total holdings in the cryptocurrency market has seen a significant decrease. Its peak market capitalization of $1.4 billion on March 17th has dropped below the $1 billion mark, now sitting at approximately $920 million as we speak.
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2024-04-17 06:04