Sam Altman’s Worldcoin Under Fire as Singapore Cracks Down on Illegal Trading: Seven Under Investigation, Five Arrested

Singapore Cracks Down on Worldcoin Account Trading Amid Growing Privacy Concerns

Singapore's authorities have intensified their scrutiny of Worldcoin, a cryptocurrency project spearheaded by Sam Altman that uses iris scans for user verification.

The Monetary Authority of Singapore (MAS) has clarified that Worldcoin itself is not subject to the Payment Services Act 2019 (PS Act).

However, activities involving the buying and selling of Worldcoin accounts and tokens may contravene this regulation, particularly if conducted as a business.

Investigation Targets Seven Individuals

Deputy Prime Minister Gan Kim Yong announced on September 9 that the Singapore Police are investigating seven individuals suspected of engaging in the illicit trade of Worldcoin accounts and tokens.

These individuals are alleged to have offered services for buying and selling these digital assets, potentially violating the PS Act which stipulates that only licensed or exempt entities can conduct such transactions.

The investigation reflects Singapore's commitment to addressing illegal crypto activities, and those found guilty could face substantial fines and imprisonment under the nation's stringent financial laws.

Public Advisory and Legal Consequences

On August 7, the Singapore Police issued a public advisory warning against the sale or transfer of Worldcoin accounts.

The advisory highlighted the risks associated with such transactions, including their potential use in money laundering and terrorism financing.

The police emphasised that engaging in these activities could implicate individuals in serious criminal schemes.

Earlier in August, the police arrested five individuals — four men and one woman, aged between 27 and 52 — for providing payment services without a licence.

Over 200 electronic devices confiscated as evidence in the case. (Source: Singapore Police Force)

These arrests were part of an operation targeting those who facilitated the trading of Worldcoin accounts and tokens.

Preliminary findings suggest that three men allegedly acted as recruiters for different parties, persuading people to create Worldcoin accounts.

They then seized these accounts and tokens for cash.

The fourth man and woman, suspected of orchestrating the purchase and transfer of these Worldcoin assets, were involved in managing and facilitating the exchange.

Global Response and Ongoing Investigations

In addition to the domestic crackdown, Worldcoin faces international scrutiny over its privacy practices.

In Hong Kong, the Office of the Privacy Commissioner for Personal Data (PCPD) found that Worldcoin breached privacy laws by collecting and using biometric data, including iris scans, without proper consent and safeguards.

As a result, the Privacy Commissioner issued an enforcement notice to the Worldcoin Foundation, demanding the cessation of all iris and facial image collection operations in Hong Kong.

Similarly, Colombian authorities are investigating Worldcoin for potential privacy breaches, while previous investigations in Kenya have recently been dropped.

These international issues reflect the global concerns surrounding Worldcoin’s handling of biometric data and privacy practices.

Legal Consequences and Future Outlook

Under Section 5 of the Payment Services Act 2019, providing payment services without a licence can result in a fine of up to $125,000, imprisonment for up to 3 years, or both.

The Singapore Police have stressed the importance of not transferring access to digital payment token wallets or World IDs, as such actions could be exploited for illicit purposes.

Authorities have warned that they will take decisive action against those involved in unlicensed payment services, emphasising the risk of these activities serving as conduits for money laundering, terrorism financing, or other criminal endeavours.