Chinese Authorities Warn of Biometric Data Exploitation Through Crypto Schemes

Chinese security officials have raised alarms over foreign entities allegedly using cryptocurrency incentives to harvest biometric data, including iris scans. The practice, deemed a national security threat, follows China's sweeping crypto ban earlier this year.

The Ministry of State Security cited cases where facial recognition data was extracted for espionage, though no specific companies were named. The methodology described mirrors Worldcoin's operations—a project co-founded by OpenAI's Sam Altman that distributes tokens in exchange for iris verification.

Worldcoin's stated goal of expanding digital financial access through biometric identity verification now faces scrutiny. Authorities claim an unnamed firm amassed extensive iris data under the guise of token distribution, escalating concerns over privacy breaches and sovereign data risks.