China Alleges Foreign Crypto Scheme Exploits Iris-Scanning for Surveillance

China's Ministry of State Security has issued a stark warning about foreign entities leveraging cryptocurrency incentives to harvest sensitive biometric data, including iris scans. The scheme, described as a national security threat, mirrors the operational model of World, a crypto project co-founded by OpenAI CEO Sam Altman, though the advisory stopped short of naming specific firms.

Global Times reported the ministry's findings, detailing how foreign intelligence agencies have allegedly used facial recognition data to conduct espionage within China. World, formerly Worldcoin, offers token rewards in exchange for iris scans—a practice it defends as a means of identity verification for financial inclusion. The ministry contends such data collection risks both personal privacy and state security.

The allegations emerge amid escalating global scrutiny of biometric data markets. While blockchain technology promises decentralized solutions, this case highlights its potential weaponization for surveillance. No cryptocurrencies or exchanges were directly implicated in the advisory.