China's Ministry of State Security issues an emergency warning! Iris replacement tokens are becoming a hotbed for digital espionage, Worldcoin suffers a big dump of 90% amidst regulatory crackdown.

On August 6, the Chinese Ministry of State Security issued a heavy warning, revealing that illegal projects use digital assets as bait to illegally collect sensitive biometric data such as facial recognition, fingerprints, and iris scans, seriously threatening citizen privacy and national security. Although not named, the operational model directly points to Worldcoin (now renamed to World), founded by OpenAI CEO Sam Altman. This project has been banned in Kenya for its iris scanning in exchange for WLD tokens, and has been deemed illegal by Hong Kong, with multiple countries including France, Portugal, Spain, and South Korea targeting it. WLD is currently reported at $0.94, having fallen 45% this year and evaporating 90% from its peak, with regulatory risks in China potentially leading to further collapse.

Ministry of National Security Targets Bio-Data Black Market: Token Rewards Become Deceptive Tools

The Ministry of State Security of China issued an announcement through its official WeChat account, revealing the new risks associated with "digital asset exchange for biometric data" that have recently emerged. The announcement pointed out that criminals often deceive the public into providing biometric data such as facial features, fingerprints, and irises under the guise of identity verification and Token airdrops. Once such information is leaked, it may be used for identity impersonation, infiltration of security facilities, and espionage activities, posing a dual threat to personal privacy and national security.

The announcement cites previous cases where some foreign organizations have collected iris and facial data under the guise of "identity verification" and then transferred it for unspecified purposes. Although not directly named, the operational model closely resembles that of the Worldcoin project, which has recently fallen into a global regulatory storm.

Worldcoin Dilemma: Iris Scanning for WLD Token Triggers Privacy Crisis

Worldcoin (renamed World in October 2024) was launched in July 2023 by Tools for Humanity, a company co-founded by OpenAI CEO Sam Altman. Its core product, the "World ID" global digital identity system, requires users to verify their identity by scanning their irises using a silver spherical device called the "Orb". In return, users can receive the project Token WLD. The project claims to distinguish between humans and AI, enabling anonymous and secure identity verification.

However, its biological data collection model has triggered regulatory crackdowns in multiple countries:

• September 2023: Kenya takes the lead in banning, questioning the use of citizen data
• Hong Kong: The Office of the Privacy Commissioner for Personal Data ruled a violation of the "Privacy Ordinance"
• France, Portugal, Spain, Brazil, South Korea: Successively launched investigations or restricted operations.

Despite Worldcoin's claims of protecting data privacy through technologies such as zero-knowledge proofs and emphasizing compliance during its rebranding, the risks of misuse and unauthorized dissemination of biometric information remain widely questioned.

Token falls 90%: Regulatory clampdown leaves WLD deep in bear market

Ongoing regulatory pressure has severely impacted the performance of the WLD market:

• Current price is $0.94, with a daily fall of 1.55%.
• Fell 45% in the past year, shrank 90% from the peak.
• If China initiates regulatory actions, it may trigger further falls.

Conclusion: The Ministry of State Security of China has rarely named the "Token trapping biological data" black market, ringing alarm bells for the booming crypto market. The global setbacks of Worldcoin confirm the regulatory minefield of biometric data collection, and the crash curve of its token WLD further reveals that compliance has become a lifeline for project survival. As countries elevate the security of biological data to the level of national security, any project that crosses the red line will pay a fatal price.