The Kenyan government has revealed that the viral cryptocurrency project, Worldcoin, which has now suspended its operations, is not a legally registered entity in the country.
The disclosure came in response to queries raised by Manyatta Member of Parliament, John Mukunji on Wednesday.
According to the government, the foreign company behind Worldcoin outsourced its data capture services to a local company named Sense Marketing.
This local company was responsible for collecting iris data from Kenyans in exchange for cryptocurrency tokens valued at around Ksh.7,000. The Directorate of Criminal Investigations (DCI) has since apprehended two Worldcoin company officials. Emmanuel Otieno, the Head of Operations, and Rael Mwende, the Country Manager. They are now assisting in investigations into the structure and operations of the cryptocurrency project.
The joint statement issued by the ministries of Interior and National Administration, as well as ICT, revealed that among the foreign nationals associated with Worldcoin is Mr. Poitr Piwowarczyk. Mr. Poitr has made several trips to Kenya, the latest one being in June 2023.
The government has initiated criminal investigations to determine the authenticity and legality of Worldcoin’s activities. The investigations will also look into the safety and protection of the harvested data, and its usage.
As a precautionary measure, immigration authorities have been directed not to allow any individuals associated with the entity to leave Kenya without clearance from the Director of Criminal Investigations.
The investigation will also extend to individuals involved with the project but based outside the country. This is following the procedures outlined in the Mutual Legal Assistance (MLA) protocol.
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Additionally, the government confirmed that the cautionary statements issued through the Office of the Data Protection Commissioner (ODPC) were prompted by the discovery that Worldcoin had not conducted any public participation exercise before starting its operations in Kenya.
To ensure full compliance a multi-agency team comprising security, financial services, and data protection agencies has been constituted to conduct inquiries and investigations. The main goal is to safeguard personal data and mitigate against any adverse practices associated with the cryptocurrency project.
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The government is also seeking to investigate the source of funds being issued to participants and beneficiaries of Worldcoin’s activities. The joint statement indicates that the investigation will be thorough and comprehensive to address the concerns raised by the project’s operations in Kenya.
