Brazil Accuses World Network of Illegally Collecting Iris Biometrics of 400,000 People, Demands Compensation of at Least 240 Million Reais

Coin Circle (120btC.coM): The São Paulo State Prosecutor's Office (MPSP) has filed a public civil lawsuit this week against Tools for Humanity Corporation, co-founded by Sam Altman, and has also named Amazon's AWS Serviços Brasil as a defendant, accusing both companies of illegal activities in collecting iris biometric data from consumers in São Paulo.

The prosecution is seeking collective damages for mental distress of at least 240 million reais (approximately 47 million USD) and is requesting the court to permanently prohibit the defendants from exchanging iris data for monetary compensation.

Patrícia Leitão, a prosecutor from the 4th Consumer Protection Prosecutor's Office handling the case, has requested a "preliminary injunction," asking the court to immediately order the preservation of all data, records, and metadata related to the processing of iris data, and to compel the defendants to submit contracts and technical reports regarding data storage. She also seeks to clarify which company within the Amazon group is actually responsible for hosting this data and argues that any form of monetary or other benefits in exchange for new iris collections should be suspended until judicial appraisal is completed.

400,000 People Exchanging Iris for Cash, Targeting Subway Stations and Citizen Service Centers

According to investigations, over 400,000 Brazilians have exchanged their irises for monetary compensation ranging from R$300 to R$700.

The collection sites are concentrated in suburban areas and high-traffic zones, particularly near subway stations and the Poupatempo citizen service centers in São Paulo, with a focus on socio-economically disadvantaged groups. The MPSP also pointed out that consumers did not receive clear explanations before consenting to the scans; the prosecution stated, "Consumers did not obtain clear information regarding the economic purposes of this project, the risks associated with biometric data processing, the transfer of data abroad, and the possibility that this information may be stored on Amazon Web Services servers."

ANPD Had Already Ordered a Ban, "Internal Benefits" Circumventing Regulations

In fact, the Brazilian National Data Protection Authority (ANPD) had ruled on January 24, 2025, that Tools for Humanity must cease exchanging Brazilian people's irises for cryptocurrency or any monetary compensation from that date. The ANPD determined that using cryptocurrency as compensation could undermine the validity of users' consent regarding sensitive biometric data, particularly concerned that monetary incentives could distort the judgment of vulnerable groups, and once the iris is provided, it cannot be deleted or reversed. Tools for Humanity's request for reconsideration was rejected by the ANPD, and if they resume collections, they will face a daily fine of 50,000 reais.

The MPSP pointed out that despite the ANPD's clear prohibition, the company continued to use the "benefits" within the World App application to indirectly pay for iris collections, effectively circumventing the ruling of the regulatory authority with a different packaging.

CPI 161-Page Report: Three Major Violations as Basis for Prosecution

Another source of this case is the São Paulo City Council's "Iris Investigation Committee" which conducted a final investigation report on the operation of the World ID project in São Paulo.

This committee was established in May 2025 and completed a 161-page report nearly a year later, which was unanimously approved by seven members on April 7, 2026, concluding that Tools for Humanity's operational model poses "high legal, social, and technical risks," and identified serious violations of Brazilian legal order in three areas: personal data protection, consumer protection, and financial system regulation.

The report has been sent to the public defender's office and the ANPD, and now serves as a legal weapon in the hands of the MPSP.

The Business Model of Exchanging Iris for Tokens is Facing Global Regulatory Tightening

Tools for Humanity, co-founded by OpenAI CEO Sam Altman, uses a spherical scanning device called Orb to collect users' irises, issuing World ID digital identities and WLD tokens, promoting a biometric identity system that "proves you are human."

However, this business model has recently faced significant setbacks globally: six countries, including Germany, South Korea, Hong Kong, and Thailand, have imposed bans on the Orb iris scanner; reports indicate that Tools for Humanity announced layoffs in June this year and has been accused of bribing Thai officials and manipulating WLD token prices, with the token's price plummeting 95% from its historical high.