Cryptocurrency investigator ZachXBT has leveled serious accusations against Worldcoin, the biometric identity project co-founded by OpenAI CEO Sam Altman. The claims draw direct parallels to the controversial practices that contributed to the spectacular downfall of Sam Bankman-Fried’s FTX empire, surfacing just as Elon Musk ramps up his public criticism of Altman’s business dealings.
ZachXBT, a pseudonymous on-chain sleuth and advisor to venture firm Paradigm, made the remarks in response to Musk’s pointed reference to Altman as “Scam Altman.”
The investigator highlighted Worldcoin’s (now rebranded as World) 2023 token launch of $WLD, describing its structure as a “predatory low-float” model that mirrored the high-risk tactics employed by FTX and its affiliated entities.
No one seems to mention Scam Altman’s other company WorldCoin aka World which launched with a predatory low float crypto token $WLD that was on par with SBF / FTX companies.
They have preyed on people from low income countries for biometric data by giving away small amounts of… pic.twitter.com/dZR0X1pJzt
— ZachXBT (@zachxbt) April 28, 2026
According to the analysis, the project aggressively targeted residents of lower-income nations, offering modest quantities of the native token in exchange for iris scans and other sensitive biometric information.
While the initiative was positioned as a solution for proving human identity amid the rise of artificial intelligence, critics argue it has instead fueled unintended consequences, including a thriving underground market for verified accounts.
Compounding these concerns, ZachXBT pointed to what he called unsustainable token inflation and routine over-the-counter sales of holdings by insiders.
These practices, he suggested, have prioritized short-term gains over long-term stability, echoing the opaque financial maneuvers that ultimately unraveled FTX.
The allegations arrive at a sensitive moment for Worldcoin, which has faced repeated backlash over privacy issues, regulatory bans in several countries, and questions about the ethical collection of personal data from vulnerable populations.
Musk’s renewed scrutiny of Altman stems partly from a high-profile lawsuit involving OpenAI, where the two former collaborators have clashed over governance, profit motives, and the direction of artificial intelligence development.
Musk has long expressed skepticism about Altman’s ventures, and the Worldcoin controversy provides fresh ammunition.
The timing amplifies existing tensions in the intersection of AI, crypto, and digital identity, where biometric verification promises to combat bots and fraud but raises profound questions about consent, data security, and exploitation.
The fallout from these claims could extend well beyond Worldcoin itself.
Heightened attention on the project may prompt regulators worldwide to tighten oversight of similar biometric-driven crypto platforms, potentially leading to stricter compliance requirements, licensing hurdles, or outright prohibitions in additional jurisdictions.
Industry professionals now warn that such developments risk eroding investor and public trust in a broader category of innovations that merge advanced identity tools with digital currencies.
Supporters of Worldcoin maintain that its technology addresses critical challenges in an AI-dominated future, such as distinguishing real humans from synthetic entities online.
Yet the latest controversy underscores persistent doubts about whether the pursuit of scale has come at the expense of transparency and fairness.
As the crypto and AI landscapes continue to converge, this episode serves as a reminder of the increasingly complex nature of digital transformation initaitives.
It highlights the balance between digital technology as well as more responsible implementation, especially when vulnerable communities and irreplaceable personal data are involved. With Musk’s oversight and ZachXBT’s forensic insights, Worldcoin now faces calls for accountability that could reshape the regulatory environment for biometric crypto projects.