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Sam Altman Backed Worldcoin Grapples With Investigation For Data Breach – Crypto News

Published

2 years ago

January 31, 2024

Dripp

Hong Kong’s Privacy Commissioner’s Office (PCPD) on Wednesday investigated six locations of Worldcoin for potential privacy risks. According to a translated version of a statement released by the privacy watchdog, the Sam Altman-backed Worldcoin “involves serious personal data privacy risks”. The investigation comes at a time when Hong Kong is increasing its scrutiny over privacy and data protection.

Worldcoin faces privacy breach allegations over iris scan

The Office of the Privacy Commissioner in Hong Kong declared that Worldcoin poses a major risk to the protection of personal data and may violate the Privacy Ordinance. The investigation was based on a court request and was conducted at six locations according to a translated version of the statement.

The main concern of the investigation revolved around the iris verification offered by Worldcoin. As noted by Privacy Commissioner Chung Liling, iris data is a subset of biometric data. In general, biometric information is considered sensitive personal data since it is distinct, unchangeable, and unique.

Any individual or entity that collects, retains, processes, or uses personal data in Hong Kong is subject to the Privacy Ordinance’s rules as well as applicable data protection standards.

Worldcoin had previously faced regulator scrutiny over the same iris biometric. Due to this regulatory concern, it had ceased providing its Orb-verification service in France, Brazil, and India.

Hong Kong increases scrutiny over data privacy

As per local media reports, Hong Kong saw a 50% increase in reported hacking and breach instances in the previous year, with roughly one-third of those cases involving public sector organizations.

Such an increase in data breaches has led to the administration doubling down on scrutiny and checks. Reuters previously reported Hong Kong will begin promoting new security measures, stating that the city “cannot afford to wait.”

In November 2022 and November 2023, cyberattacks affected over 73% of Hong Kong enterprises, according to a report released last year by the Hong Kong Productivity Council and Privacy Office. In the wake of the ascending number of data breaches and privacy concerns, the country’s administration is on a run to tackle the situation with strict laws.

After this Worldcoin incident, the privacy watchdog has now urged people to be cautious about sharing personal information and try to prohibit iris verifications.

WLD prices today

At the time of writing WLD prices have toppled 11.2% in the last 24 hours and currently stand at $2.34 a piece. The total market cap of the digital asset has also fallen 11.4% to $284.5 million. WLD’s trading volumes have surpassed that $170.9 million mark. Trading volumes as of now have surged 50% with Binance seeing the largest share of trading.