Prominent on-chain investigator ZachXBT has reignited scrutiny around Worldcoin, accusing the project of operating a “predatory” token model while drawing parallels to the collapse of FTX. The criticism comes at a sensitive moment, as Elon Musk pushes forward with a high-stakes lawsuit against OpenAI and its CEO, Sam Altman.
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
Allegations of exploitation and token manipulation
ZachXBT’s comments surfaced in response to Musk’s post on X, where the billionaire labelled Altman “Scam Altman.” The investigator doubled down, alleging that Worldcoin’s WLD token structure mirrors tactics seen in past crypto scandals. According to him, the project’s low circulating supply and token distribution model disproportionately benefit insiders while exposing retail participants to risk.
A major point of concern lies in Worldcoin’s biometric data collection strategy. The project uses iris-scanning devices known as Orbs to verify users as human, offering small amounts of WLD tokens in exchange. ZachXBT argues that this approach primarily targets individuals in low-income regions, effectively exchanging sensitive biometric data for minimal financial incentives.
He also pointed to reports suggesting the emergence of a secondary market where verified accounts are being sold for as little as $0.50. This development, if accurate, raises questions about the integrity of the system and undermines its stated goal of secure digital identity verification.
Further adding to the controversy are claims of large-scale token sales. Data shared by ZachXBT indicates that the Worldcoin Foundation offloaded tens of millions of WLD tokens through institutional channels, fueling concerns about insider activity and supply inflation.
Musk’s lawsuit adds fuel to market uncertainty
The timing of these allegations is notable, coinciding with Musk’s legal battle against OpenAI. The lawsuit alleges that Altman and his team abandoned the organization’s original nonprofit mission in favour of commercial interests. With jury selection already completed in a California federal court, the case is expected to shape public perception around leadership credibility in both AI and crypto sectors.
In January, the World token surged following reports that OpenAI is building a “humans-only” social network to eliminate AI-driven bots. Market reaction has been cautious. WLD saw a modest price decline alongside fluctuating derivatives activity, reflecting mixed trader sentiment. While some investors appear to be reducing exposure, others are positioning for volatility as the narrative around Worldcoin and its leadership continues to evolve.
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