Authorities are investigating claims about how Orb handled certain financial matters.
Tools for Humanity Under the Spotlight
Tools for Humanity, the startup behind the Orb biometric identity system and the Worldcoin cryptocurrency project, is facing renewed scrutiny after reports revealed that the company commissioned two separate legal investigations into allegations involving financial irregularities and potential compliance violations.
The company, co-founded by OpenAI CEO Sam Altman and entrepreneur Alex Blania, has become one of the most closely watched ventures in the global technology sector. Its mission is ambitious: create a digital identity system capable of distinguishing humans from artificial intelligence through iris-scanning technology.
However, recent reports suggest that the company has spent the past year addressing concerns that extend beyond technology and into corporate governance, financial controls, and international operations.
What the Investigations Examined
According to reports, Tools for Humanity engaged two major international law firms to independently review separate concerns raised within the organization.
One investigation focused on allegations of financial irregularities, including concerns about company spending practices, corporate housing expenses, and employee classification policies.
The review reportedly examined whether certain personal expenses were charged to company accounts and whether some workers had been categorized as contractors instead of full-time employees.
The company’s auditing firm, BDO, also reviewed aspects of the concerns related to financial reporting and accounting practices.
A separate investigation examined the company’s operations in Thailand and potential compliance risks under the United States Foreign Corrupt Practices Act (FCPA), one of the world’s most stringent anti-bribery laws.
Thailand Operations Come Under Review
The Thailand review reportedly focused on a business partner connected to the company’s regional rollout.
According to reports, the partner was later linked to a South African businessman who has faced allegations from authorities in multiple jurisdictions related to transnational cyber fraud activities.
Tools for Humanity stated that the individual involved had allegedly operated under a different identity and that the company was unaware of the allegations at the time the relationship was established.
After becoming aware of the concerns, the company said it terminated the partnership and introduced stronger due diligence procedures for future business relationships.
The company has maintained that it is not aware of evidence showing violations of anti-bribery laws by the company or its employees.
Questions Around Worldcoin
The investigations also reportedly reviewed concerns related to payments connected to the Worldcoin ecosystem.
Sources familiar with the matter alleged that company leaders approved substantial payments to an external firm connected to activities involving the Worldcoin token.
While no wrongdoing has been established, the allegations reportedly raised questions about whether certain actions could attract scrutiny under securities regulations.
The Worldcoin token has experienced extreme volatility since its launch.
According to market data, the token traded near $11.79 at its peak in March 2024. By June 2026, its value had fallen to approximately $0.61, representing a decline of roughly 95 percent from its highest level.
The dramatic drop highlights the challenges facing many cryptocurrency projects amid changing regulatory environments and shifting investor sentiment.
A Startup Valued in the Billions
Founded in 2019, Tools for Humanity has attracted significant investor interest.
The company was valued at approximately $2.5 billion during a major fundraising round in 2023 and has raised hundreds of millions of dollars from prominent investors, including Andreessen Horowitz, Bain Capital Ventures, and Khosla Ventures.
The startup’s core product, the Orb, is a biometric device that scans a person’s iris to create a unique digital identity called World ID.
The company argues that such technology could become increasingly important in a future where artificial intelligence systems make it harder to distinguish between humans and machines online.
Regulatory Challenges Continue
Even before the latest reports, Tools for Humanity had faced regulatory questions across several countries.
Authorities in Spain, Indonesia, India, and Thailand have either paused, restricted, or investigated aspects of the company’s operations due to concerns surrounding biometric data collection, privacy protections, and consent mechanisms.
Thailand’s Department of Special Investigation previously reported that approximately 1.2 million people in the country had undergone iris scans linked to the Worldcoin project.
Officials raised concerns that some participants may not have fully understood the consent process when receiving cryptocurrency incentives tied to enrollment.
These developments have intensified global debate about biometric identity systems and the balance between innovation, privacy, and regulation.
Internal Changes and Organizational Challenges
The company has also experienced significant internal changes.
Reports indicate that several senior executives departed over the past year, while a recent restructuring resulted in workforce reductions affecting fewer than 15 percent of employees.
With a workforce estimated at around 500 employees globally, the company says it is entering a new phase focused on partnerships, commercial applications, and practical uses for World ID technology.
Management has emphasized that strengthening governance, compliance, and operational controls remains a priority as the organization scales internationally.
Why the Story Matters
The significance of these investigations extends beyond a single startup.
Tools for Humanity sits at the intersection of several fast-growing industries: artificial intelligence, digital identity, biometrics, cryptocurrency, and global fintech.
As governments worldwide grapple with AI-generated content and online identity verification, the company’s technology addresses a problem that many experts believe will become increasingly important.
At the same time, the scrutiny surrounding its operations demonstrates the challenges faced by rapidly growing technology companies operating across multiple jurisdictions.
For investors, regulators, and technology leaders, the outcome of these investigations could offer valuable lessons about governance, compliance, and trust in emerging technologies.
While the company insists it acted appropriately when concerns emerged and has strengthened its controls, the investigations highlight how closely regulators and stakeholders are watching firms operating at the frontier of AI, digital identity, and financial innovation.
Kylie Cooper/Reuters; Christina House/Los Angeles Times via Getty Images; Alyssa Powell/BI
Source: BI
Read more news, and follow us on Instagram
