Worldcoin Risks Suspension in Kenya as U.S. Steps in

The Kenyan government raised concerns of data protection and decentralized identity amid investigation into Worldcoin’s operations.

Alex Blania concerned about the news to do with Kenya and his Worldcoin production, as he already planted many of them around.
Created by Kornelija Poderskytė from DailyCoin
  • The Kenyan government attempted to detain Worldcoin executives.
  • The company faces increased scrutiny from multiple countries.
  • The U.S. government demanded the executive’s release. 

Regulations are intensifying in the fast-paced cryptocurrency landscape as more regions strive to ensure user data protection and mitigate financial risks.

In this regard, the online digital identity platform Worldcoin finds itself at the heart of another regulatory fire as the Kenyan government raised concerns about data protection and decentralized identity.

Kenya’s Concerns and Attempted Detainment

Worldcoin has recently been the target of Kenya’s scrutiny as officials investigate the company’s activities. The Kenyan government banned the iris-biometric project on August 3rd, following accusations that the company and its CEO, Alex Blania, had violated several laws in undertaking illegal operations in the region. 


The project, which attracted over 300,000 Kenyans to scan their eyeballs in exchange for cryptocurrency tokens, operated as an unregistered entity in the country, raising concerns about unauthorized collation of citizens’ data. Kenyan Interior Cabinet Secretary Kithure Kindiki stated that the company’s model of biometric data collection could potentially facilitate financial crimes, including money laundering and terrorism financing, jeopardizing the country’s economy.

On September 6th, a Parliamentary Ad Hoc committee to investigate the project summoned Worldcoin’s CEO, Alex Blania, and TFH’s legal spokesman, Thomas Scott, to respond to these allegations. The situation escalated when Kenyan authorities attempted to detain the two at the Jomo Kenyatta International Airport following the hearing.

U.S. Intervention and Ongoing Investigation

The United States government swiftly intervened in the arrest, securing the release of Blaina and Scott with the assertion that their guilt has yet to be proven in any of the accusations.


Kindiki said, “They tried to leave the country but were stopped and put in custody, but the US government intervened, saying they would be allowed to leave.”

Following the release of the executives, Kindiki revealed that the ‘Orbs’ used for collecting data in the Worldcoin project had been recovered and submitted to the Kenya Communications Authority for forensic analysis. 

Statements from 26 witnesses and other important documents of interest have also been retrieved. The evidence is expected to enable the government to assess the extent of the data retrieved from Kenyan citizens and the severity of the resulting implications. 

The parliamentary committee has warned against hasty actions before investigations are concluded, emphasizing its commitment to ensuring the accountability of every individual connected to the Worldcoin project to protect its citizens.

On the Flipside

  • Kenya recognizes the potential of crypto but also its risks, especially concerning data privacy and security.
  • According to Cabinet Secretary Kindiki, the absence of a legal framework for cryptocurrencies in Kenya may pose more economic and security risks for the country. 
  • Worldcoin also faces regulatory scrutiny from other countries, including Germany and Argentina, indicating a broader international concern regarding its operations.

Why This Matters

The need for user privacy and data protection within the digital landscape cannot be overstated. The outcome of these allegations could have far-reaching consequences on a global scale as it underscores the importance of prioritizing data security within the ecosystem. 

Discover other controversies and regulatory challenges surrounding the Worldcoin project:
Worldcoin (WLD) Slides 45% in August: What Went Wrong?

Read more about the newly proposed coin listing regulation in New York:
New York Proposes Stricter Regulations for Crypto Listings

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Grace Abidemi

Grace Abidemi, a cryptocurrency reporter at DailyCoin, covers industry developments and trends. She previously worked as a freelance writer. With a Bachelor's degree in German Language and certifications in marketing and storytelling, Grace creates engaging content. When not working, she's in Nigeria, mastering cooking and canvas painting, and enjoys learning about different cultures and languages.