Worldcoin (WLD) Crashes 10% After Kenya High Court Orders Biometric Data Deletion

Worldcoin faced a major legal setback in Kenya on May 6, 2025. Justice Aburili Roselyne of the Kenya High Court ruled that Worldcoin’s biometric data collection violated the country’s Data Protection Act. The decision followed a case filed by the Katiba Institute, which promotes constitutional rights. The ruling ordered the Worldcoin Foundation and its agents to stop all biometric data processing. The court also instructed them to delete all previously collected data within seven days. Kenya’s Data Protection Commissioner will oversee the deletion process. The judge issued three separate legal orders. First, she prohibited Worldcoin from collecting or processing biometric data without a proper Data Protection Impact Assessment (DPIA). Second, she nullified all approvals that allowed such data collection. Third, she mandated permanent deletion of data already gathered. Katiba Institute Challenged Consent Practices The Katiba Institute filed the case in August 2023. The institute argued that Worldcoin did not meet Kenya’s legal standards for data consent. Worldcoin had offered users $50 worth of WLD tokens to scan their irises through its Orb device. According to the ruling, offering WLD tokens in exchange for biometric data invalidated proper consent. The court cited Sections 25, 26, 29, 30, and 31 of Kenya’s Data Protection Act. It said Worldcoin collected data without approval from the Office of the Data Protection Commissioner (ODPC). In a public post, ICJ Kenya confirmed that the court found Worldcoin had started collecting data without valid consent or a required DPIA. The group welcomed the ruling and said it reaffirmed privacy rights under the constitution. Kenya’s Parliament Majority Leader Kimani Ichung’wah questioned why Worldcoin could collect such data in Kenya. He said, The ruling has added legal pressure on Worldcoin, especially in jurisdictions with existing concerns over privacy violations. In Indonesia, officials have already suspended Worldcoin activities over similar issues. Despite restrictions in multiple countries, Worldcoin has continued to expand in the United States. The project recently launched in six cities including Los Angeles, San Francisco, and Atlanta. In Kenya, however, the High Court’s ruling now prevents further biometric collection. Constitutional lawyer Joshua Malidzo Nyawa led the case on behalf of the Katiba Institute. WLD Forms Rising Wedge as Price Drops Below Support Trendline Meanwhile , on May 6, 2025, the WLD/USDT daily chart displayed a rising wedge pattern. This technical formation happens when the price climbs with higher highs and higher lows but within narrowing trendlines — often leading to a downward breakout. In this case, WLD rose from around $0.84 to a local high near $1.50, forming the wedge. However, it broke below the lower trendline near $0.90, signaling a potential bearish move. If confirmed, the price could fall close to the wedge’s base, around $0.83–$0.84. Additionally, the 50-day Exponential Moving Average (EMA), currently near $0.87, also acts as resistance after the breakdown. The Relative Strength Index (RSI) dropped to 46.23, moving below its yellow signal line and falling from a recent peak of 61.25. This drop in RSI shows weakening bullish momentum.