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Deception, exploited workers, and “free cash”: How Worldcoin recruited its first half-million test users

Worldcoin’s early user drive mixed WLD rewards, local recruiters and biometric scanning. Here is what participants were offered, who was paid, and why informed consent became the central controversy.
From TheFinanceBase Team8 min to read
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Worldcoin’s earliest growth came from a simple pitch: prove you are a unique human with an Orb and receive cryptocurrency. On the ground, however, recruitment often depended on local intermediaries, promotional promises and events that some people understood as aid or cash assistance. MIT Technology Review’s April 6, 2022 investigation found that some participants did not understand they were surrendering biometric information, while Worldcoin disputed claims about coercion, direct cash payments and data monetization.

What Worldcoin was trying to build

Worldcoin presented itself as both a cryptocurrency project and an identity experiment. Its stated goal was to establish that a participant was human and unique, without relying on conventional identity documents. An Orb captured information from the eye and produced an iris-based code intended to prevent duplicate claims. The project later branded the identity credential as World ID.

The public appeal was close to a universal-basic-income promise: people around the world could receive WLD tokens simply for proving personhood. The less visible objective was to build a large proof-of-personhood network that could distinguish people from bots and duplicate accounts as artificial intelligence made online identity harder to verify. Tools for Humanity developed the project, while locally recruited Orb operators handled much of the rollout.

Worldcoin’s own explanation of proof of personhood and its Kenyan communications are available at worldcoin.org/kenya-communications-timeline.

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The recruitment scene: an aid event that became biometric enrollment

MIT Technology Review reported on registration activity in Indonesia and interviewed more than 35 people in Indonesia, Kenya, Sudan, Ghana, Chile and Norway. The investigation said early recruitment took place in roughly two dozen countries, although the experience varied by location.

In one Indonesian village, residents reportedly gathered at a school after hearing about social assistance or a giveaway. Local officials helped organize the crowd. People queued, received numbers and were directed through a process that included contact-information collection and an Orb scan. Some participants said they did not realize that the unusual device was collecting iris-related biometric information rather than merely distributing aid.

Comparable events appeared in college campuses, markets, metro stations and urban centers. An Orb might remain in one place for only a day or two, creating urgency and making a local organizer’s explanation especially important. The reported sequence was generally:

  1. A local representative publicized a short registration event.
  2. Residents were attracted by tokens, local-currency offers, goods or promises of future wealth.
  3. Staff collected phone numbers or email addresses and helped people use the app.
  4. The participant looked into the Orb, which processed the eye and generated information used to establish uniqueness.
  5. The participant received, or became eligible to receive, WLD.
  6. In some markets, the token was sold through an exchange or informal broker.

That sequence does not mean every site used the same script. The investigation found different explanations, incentives and levels of understanding across countries.

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Who was paid, and what did “free cash” mean?

Several transactions were routinely collapsed into one headline claim. They were not the same thing.

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Transaction What it meant
WLD grant Cryptocurrency issued or made available through the project’s enrollment system; its cash value depended on market price and liquidity.
Later sale of WLD A user exchanged tokens with an exchange, broker or other buyer. That was not necessarily a cash payment from Worldcoin.
Operator commission A separate payment to a recruiter or operator for successful verification or related work.
Promotional incentive Goods, local currency, or a promise made by a local organizer; the evidence does not establish that every promise was guaranteed by Worldcoin.

MIT Technology Review reported that an Indonesian intermediary received approximately 2,000 Indonesian rupiah—about 14 U.S. cents at the time—for each person successfully scanned. The intermediary estimated 170 qualifying scans, or 340,000 rupiah, roughly $23.80 then. This was an operator payment, not a universal user cash grant.

Worldcoin later said in its Kenyan communications that the company did not pay users the widely reported fixed cash amount. Its account was that users received WLD and could sell it on the open market; any resulting fiat payment came from token buyers. A token can be valuable to a participant, but it is not the same promise as a guaranteed cash handout.

The local recruitment machine

Worldcoin could not place senior staff at every school, market or station. Local companies, contractors, community contacts and informal recruiters supplied the reach. Their work included finding venues, organizing queues, explaining the process, training or coordinating staff, and helping people complete enrollment.

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Worldcoin’s tokenomics documentation says operators were rewarded for verifying people and that rewards were intended to reflect sign-up quality rather than raw volume. It also identifies recruitment, training, logistics, outreach and user engagement as project-funded activities, and described an ambition to deploy more than 50,000 Orbs or similar devices. See the project’s operations documentation.

The incentive structure matters. A person paid for each successful scan has a reason to keep the line moving and complete conversions. That does not prove that every operator misled anyone, and the available evidence does not establish that all operators were employees. Depending on the country, “operator,” “contractor,” “partner,” “recruiter” or “local intermediary” may be more accurate than “employee.”

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What participants thought they were accepting

The investigation described a gap between the language used to attract people and the transaction they actually entered. A participant might hear “assistance,” “free money,” “cryptocurrency” or “future wealth,” while the project’s technical purpose was biometric proof of personhood.

Some people may have knowingly accepted the trade because the reward was meaningful. Others reportedly understood neither the biometric component nor the long-term implications. These are different situations, and treating every participant as either a fully informed customer or a powerless victim misses the central issue: whether the decision was informed and fairly presented.

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Why consent became the central dispute

A signed form or a tap in an app establishes formal consent, not necessarily informed consent. A more useful test asks five questions:

  • Comprehension: Did the person understand that an eye scan and derived biometric information were involved?
  • Voluntariness: Could the person refuse without losing essential assistance or facing pressure from an organizer?
  • Economic influence: Was the reward unusually valuable relative to local income, or was its token value misunderstood as guaranteed cash?
  • Reversibility: Could the person correct, withdraw or replace the identifier in a practical way?
  • Power and language: Could the participant read and understand the notice, and know who the recruiter represented?

MIT Technology Review reported cases in which people were unclear about the purpose of the event or the use of their scans. The concern was therefore not simply whether anyone was physically forced. It was whether an economically unequal, fast-moving event allowed a person to evaluate an irreversible biometric bargain.

Later regulatory findings provide jurisdiction-specific support for those concerns. Hong Kong’s Privacy Commissioner said Worldcoin had scanned 8,302 people and contravened data-protection principles involving excessive collection, fairness, transparency and access or correction rights. The regulator also found that relevant notices and consent documents were not available in Chinese and that operators did not adequately explain the documents or risks. Its finding, published May 22, 2024, does not legally establish that every allegation in every country was proven. Read the decision at pcpd.org.hk.

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What happened to the biometric information?

Worldcoin’s process required biometric processing to establish uniqueness. The company has described an iris code as a numeric representation calculated from iris texture. That is not necessarily the same as retaining a raw photograph of an eye.

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World later summarized a Trail of Bits audit of Orb software frozen on July 8, 2023, version 3.0.10. According to the company’s summary, the assessed software did not persist personally identifiable information other than the iris code, did not write the iris code to persistent storage on the Orb, and sent it to an approved backend through an encrypted connection. World said version 4.0.34 was in use as of March 14, 2024, outside that frozen audit version. The audit found no directly exploitable vulnerability in relation to the stated project goals within its scope; it was not a finding about consent, operator conduct or every deployment. See World’s audit summary.

Those distinctions matter, but they do not end the privacy debate. Deleting raw imagery does not automatically remove risks associated with a derived biometric identifier. An iris cannot be replaced like a password. Questions about retention, access, governance, future uses, account recovery and practical deletion remain separate from whether the Orb software was technically secure.

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Worldcoin’s response

Worldcoin’s position was that participation was voluntary, operators were marketing and onboarding agents rather than biometric-data processors, and users received privacy notices, consent materials and explanations through the World App. The company denied selling or monetizing users’ biometric data. It also disputed accounts of a fixed company-paid cash amount in Kenya, emphasizing that WLD could be sold by users to market participants.

Those are material responses, not mere technicalities. A company can distinguish raw images from derived codes, and a token grant from a cash payment. But formal documents and a secure device do not by themselves show that a person at a crowded local event understood the transaction.

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Kenya: when mass recruitment met government scrutiny

Kenya became one of Worldcoin’s most visible early markets. After the 2023 launch, token rewards and the ability to exchange WLD for cash drew large crowds to Orb locations. Kenyan authorities suspended the operation while security, financial, data-protection and legal questions were investigated. TechCrunch reported on the suspension and the resulting scrutiny at techcrunch.com.

Parliamentary proceedings questioned data-protection compliance, the Orb’s legal status and safety checks, and whether local operators should be treated as representatives of the project or independent contractors. The proceedings are available at parliament.go.ke.

Kenya also illustrates why the cash-versus-token distinction matters. A headline amount could refer to WLD’s market value at one moment, while the amount a user actually received depended on price, exchange access, fees and, in some cases, an informal broker.

The unresolved bargain

Worldcoin’s first users were not simply buying a coin. Depending on what they understood and what the local process delivered, they were accepting a package that could include:

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  • a volatile token reward;
  • a proof-of-personhood credential;
  • the processing of an iris-derived identifier;
  • reliance on a local recruiter whose legal relationship to Worldcoin might be unclear; and
  • participation in a network whose governance and future uses were still developing.

The strongest conclusion supported by the record is qualified. Early recruitment created a serious informed-consent and power-imbalance problem, particularly where aid-like messaging, language barriers, economic need and per-scan incentives converged. Later regulatory action in Hong Kong and scrutiny in Kenya reinforce concerns about transparency and data governance. At the same time, the evidence does not establish that every participant was deceived, that Worldcoin directly paid every user a fixed cash sum, or that the company sold biometric data. A technical audit of a specified Orb software version also cannot answer a social question: whether people understood what they were agreeing to.

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