Scan an iris after replacing $WLD , then “kick the iron plate”; Brazil accuses World Network of illegally collecting data, seeking $240 million in damages, and Amazon is also sued alongside it

The Public Prosecutor’s Office of the State of São Paulo (MPSP) has filed a public-interest civil lawsuit against Tools for Humanity and Amazon’s Brazilian subsidiary, Amazon AWS Serviços Brasil, accusing both companies of unlawfully collecting the iris biometric data of 400k people for monetary compensation. The prosecutors are seeking collective moral damages of at least R$240 million.

(Background: Sam Altman’s World developer (the former Worldcoin) laid off staff! Orb iris scanning was banned in six countries.)
(Additional context: Worldcoin allegedly bribed Thai officials, and engaged in market-making manipulation of the WLD token price! The token has since crashed 95% from its peak.)

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• 400k people exchange irises for cash, targeting subway stations and citizen service centers
• ANPD has already ordered a ban at the earliest stage; “internal benefits” are used to circumvent it in disguise
• The 161-page CPI report: three major illegal findings become the basis for the charges
• The business model of trading irises for tokens is being tightened and surrounded by global regulation

This week, the Public Prosecutor’s Office of the State of São Paulo (MPSP) filed a public-interest civil lawsuit against Tools for Humanity Corporation, co-founded by Sam Altman, and also named Amazon’s Amazon AWS Serviços Brasil as a defendant. The prosecution alleges the two companies violated the law in the process of collecting iris biometric data from consumers in São Paulo.

The prosecutors are seeking at least R$240 million (about $47 million) in collective moral damages, and are asking the court to permanently prohibit the defendants from trading iris data for monetary compensation.

Prosecutor Patrícia Leitão from the 4th Consumer Protection Prosecutor’s Office, handling the case, requested a “preliminary injunction,” asking the court to immediately order the preservation of all data, records, and metadata related to iris data processing, and to require the defendants to submit the contracts and technical reports related to how the data is stored. She also asked that it be determined which company within the Amazon group is actually responsible for hosting these data, and argued that before a judicial forensic examination is completed, new iris collection should be temporarily halted in any form where money or any benefit is exchanged.

400k people exchange irises for cash, targeting subway stations and citizen service centers

Based on an investigation, more than 400k Brazilians have exchanged their irises for monetary compensation ranging from R$300 to R$700.

The collection sites are concentrated in suburbs and high-traffic areas, especially near subway stations and locations of São Paulo’s citizen service center Poupatempo, with a particular focus on groups with relatively weaker socioeconomic status. The MPSP also pointed out that consumers were not provided with clear explanations before agreeing to the scanning. In its statement, the prosecution said bluntly: “Consumers were not given clear information about the economic purpose of this project, the risks related to the processing of biometric data, the transfer of data abroad, and the fact that this information may be stored on Amazon Web Services servers, among other matters.”

ANPD has already ordered a ban; “internal benefits” are used to circumvent it in disguise

In fact, Brazil’s National Data Protection Authority (ANPD) ruled as early as January 24, 2025 that Tools for Humanity must stop, starting from the next day, collecting Brazilians’ irises in exchange for cryptocurrency or any monetary compensation. ANPD found that using cryptocurrency as consideration may undermine the validity of the “consent” users give for sensitive biometric data—especially given concerns that monetary incentives could distort decision-making among vulnerable groups—and that once an iris is provided, it cannot be deleted and is irreversible. Tools for Humanity’s request for reconsideration was rejected by ANPD; if collection resumes, it would face a fine of R$50k per day.

The MPSP pointed out that despite ANPD’s explicit ban, the company continued to collect irises by using “benefits” inside the World App application to continue paying compensation in disguise, effectively bypassing the regulator’s ruling through another packaging.

The CPI 161-page report: three major illegal findings become the basis for the indictment

Another source of this case is the final investigation report produced by São Paulo City Council’s “Iris Investigation Committee” regarding the World ID project’s operation in São Paulo.

The committee was formed in May 2025. After nearly a year, it completed a 161-page report, which on April 7, 2026, was unanimously approved by all seven members. The report concluded directly that Tools for Humanity’s operating model carries “high legal, social, and technical risks,” and found serious violations of the Brazilian legal order across three major areas: personal data protection, consumer protection, and financial system regulation.

The report has been simultaneously sent to the Office of the Public Defender and ANPD, and is now being turned into a litigation weapon in MPSP’s hands.

The business model of trading irises for tokens is being tightened and surrounded by global regulation

Tools for Humanity was co-founded by Sam Altman, CEO of OpenAI. Its Worldcoin (now renamed World Network) uses the spherical scanning device Orb to collect users’ irises, in exchange for issuing World ID digital identity and the WLD token, promoting a biometric identity system that says “prove you are human.”

But this business model has recently hit blocks one after another worldwide: six countries, including Germany, South Korea, Hong Kong, and Thailand, have successively banned Orb iris scanning. As Donga also reported, in June this year Tools for Humanity was said to have laid off staff, and at the same time allegations emerged that it may have bribed Thai officials and manipulated the WLD token price; the token’s price is down 95% from its historical high.