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China’s Ministry of State Security (MSS) has accused a foreign entity of using cryptocurrency incentives to collect iris scans globally, posing a threat to national security and privacy. The August 6, 2025, advisory, posted on WeChat, claims the unnamed firm—widely speculated to be Worldcoin, co-founded by OpenAI’s Sam Altman—offered crypto tokens to harvest biometric data under the guise of identity verification. The MSS alleges this data was transferred overseas, potentially for surveillance or AI training, sparking fears of espionage.
The accusations highlight concerns over Worldcoin’s orb-based iris-scanning, which rewards users with WLD tokens, trading at $0.93 after a 4% dip. China’s warning follows global scrutiny of Worldcoin in Germany, France, and Kenya over consent and data storage issues. The MSS cited cases of foreign spies using stolen biometric data to create deepfake identities, infiltrating secure sites, amplifying national security risks.
China urged citizens to scrutinize biometric data practices, emphasizing the sensitivity of iris patterns, which are nearly impossible to replicate and valuable for high-security authentication. The ministry warned against participating in crypto-linked identity schemes and hinted at stricter regulations on cross-border data flows and blockchain platforms.
This scandal could escalate U.S.-China tech tensions, as Beijing pushes for tighter biometric and crypto controls. It may also prompt global regulators to reassess projects blending blockchain with personal data, balancing innovation against privacy risks. As Worldcoin faces mounting criticism, the case underscores the growing clash between digital identity solutions and surveillance fears, reshaping the crypto landscape.
