China’s Ministry of State Security (MSS) has issued a warning over the growing risk of biometric data theft tied to cryptocurrency-linked platforms. The agency revealed that foreign groups have allegedly used crypto token projects as a pretext to scan and collect sensitive iris data from users worldwide, transferring the information overseas and creating major privacy and security concerns.
According to the MSS, biometric identification technologies such as facial recognition, fingerprint scans, and iris mapping have rapidly expanded due to their speed and accuracy. However, the ministry warned that these same technologies present a serious risk when mishandled or exploited by malicious actors.
China’s Ministry of State Security (MSS) on Wednesday sounded the alarm over the risk of personal information theft through biometric identification technologies, especially warning that publicly disclosed cases have shown foreign spies stealing facial data to carry out… pic.twitter.com/OIcoLaaBdw
— Global Times (@globaltimesnews) August 6, 2025
The MSS highlighted cases where foreign intelligence agencies illegally stole facial data to forge identities, gain access to restricted materials, and even infiltrate sensitive workplaces. In one incident, a foreign company directly linked its fingerprint payment system to its corporate database, which suffered repeated breaches by hackers, leading to significant data leaks.
Iris data, in particular, was flagged as a critical target for abuse. Due to its stability, precision, and common use in high-security systems, the MSS warned that such information could be weaponized for identity theft or espionage operations.
The ministry specifically pointed to crypto-related projects that allegedly collected biometric data under the guise of token distribution. These practices, it said, represent a serious risk to both personal privacy and national security.
The MSS advised the public to remain cautious when engaging with crypto platforms that request biometric information. Individuals should verify how their data will be stored, processed, and used, and ensure they review privacy policies carefully.
As cryptocurrency and digital identity technologies continue to intersect, the warning underscores the urgent need for stronger oversight and user vigilance to prevent exploitation.
This warning comes as Kuaishou, China’s second-largest short video platform, faces a crypto-linked corruption scandal. Eight employees were recently convicted of embezzling nearly 140 million yuan using digital assets—highlighting the increasing misuse of crypto despite China’s national ban.
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