Indonesia suspends Sam Altman’s World amid global scrutiny of biometric crypto project
The eyeball-scanning startup has faced regulatory crackdowns across multiple continents as concerns mount over privacy, legality and data handling.
Indonesia has temporarily suspended operations of Sam Altman’s eyeball-scanning identity venture, World, citing legal violations by the startup's local affiliates.
The country’s Ministry of Communication and Digital Affairs announced on Sunday that it had frozen the Electronic System Organizer Registration Certificate (TDPSE) for World, formerly known as Worldcoin, and WorldID services. The move effectively halts the project’s activities in Southeast Asia’s largest economy.
Authorities said preliminary findings showed that PT. Terang Bulan Abadi, a company involved in operating World’s iris-scanning orbs, was not properly registered as an electronic system operator.
Another company, PT Sandina Abadi Nusantara, is under investigation for alleged legal misrepresentation. The ministry's statement does not clarify the two companies' relationship with World, but the company does use local contractors to offer its services globally that it calls “orb operators”.
Alexander Sabar, Director General of Digital Space Supervision, said the decision followed public reports of suspicious activities linked to World operations.
"Non-compliance with registration obligations and the use of another legal entity’s identity to operate digital services is a serious violation," Sabar said.
World initially launched in Indonesia in February this year.
The freeze adds to a growing list of regulatory headaches for World, which has come under fire from privacy regulators, law enforcement and civil society watchdogs worldwide.
The project, developed by Tools for Humanity—a startup co-founded by OpenAI CEO Sam Altman and Alex Blania—aims to create a global “proof of person” network using biometric data.
Participants have their irises scanned in exchange for a unique digital ID and cryptocurrency allocations of the project's token, a premise the company pitches as critical in an age of generative AI and digital identity fraud.
While Worldcoin claims its solution is privacy-centric and uses cryptographic protections to keep biometric data on users' devices, critics argue it poses risks to privacy and data security.
Police raids, data privacy investigations, and outright bans have plagued the project globally. Regulators in Hong Kong and Brazil have already restricted World’s operations, citing concerns over how biometric data is collected and stored.
In Germany, authorities ordered the company to delete biometric data over potential GDPR violations, a decision World is appealing.
Meanwhile, Brazil's national data authority rejected World’s appeal to lift operational restrictions in February, though the company insists it will continue offering “education and information” to the public in its Brazilian locations.
In public statements, Tools for Humanity says World ID is a “privacy-first” platform designed to protect users in an AI-dominated world (i.e. a World its co-founder Altman has helped to create). The company emphasises that data remains local, and that the orbs don’t store users’ raw biometric information.
More than 12 million people globally have signed up, with 400,000 added in the past week alone, according to the company. Its US launch is now underway, despite the swirling controversies.
But skepticism continues to mount. Beyond privacy concerns, human rights groups have questioned World’s recruitment tactics, with reports alleging that some orb operators have coerced individuals into scans or targeted vulnerable populations. A black market for iris scans has also emerged, with biometric data being sold for as little as $30.
Still, World is pushing forward. Last week, it announced integrations with Match Group, prediction market Kalshi, a World-linked Visa card and new monetization plans for apps using World ID.
Latest Investigations
How WikiFX Uses Copyright Takedown Complaints to Bury Criticism
Last year, I wrote an article about a shady forex rankings site that gives negative reviews to forex brokers who refuse to pay for their services. Then the article, and many others critical of the company, disappeared from Google Search.
Cambodian firm accused of crypto crime quietly launches blockchain 'no government or company can block'
In many ways, Xone looks little different from the many, many blockchain testnets out there. But its backed by a notorious Cambodian company aiding money launderers and linked to the country's ruling family.
Meet the South African brothers conning coaches out of thousands through their online lead generation business
Dirk and Bruwer de Jager want you to believe that they're a success story in the world of online marketing. Their customers tell a different story.
Get the latest news, scoops and insights to your inbox in one newsletter each week by subscribing to the Scamurai weekly newsletter. Got a tip or story? Contact us at callan@scamurai.io.
