According to sources, Worldcoin denies the previous allegations of illegal activities in Buenos Aires and explains that it prioritizes "the opportunity to interact with government agencies, regulatory agencies, and third parties to answer any questions they may have." Additionally, Worldcoin stated that it has responded to all inquiries made by authorities since January and that the allegations against it are yet to be proven. 

Previously, Worldcoin faced legal action for its alleged illegal operations in Buenos Aires. The company was accused of including unfair terms in its binding contracts, violating the rights protected by Argentina's National Consumer Protection Law. The consumer protection organization in Buenos Aires also found inconsistencies in the way the company handled biometric data collected from local citizens.

The local government found that several contracts users accept when using Worldcoin's services, including "Terms and Conditions of Use," "Privacy Statement," and "Data Authorization," harm the rights of Argentine consumers. Among these unfair terms, one granted the company the ability to suspend services without refunding users. These contracts force users to waive collective claims and establish regulations applicable to Argentine people in the Cayman Islands.

Additionally, the final dispute will be resolved through arbitration under California's jurisdiction, which violates Argentine law. According to information released by the city, the iris data collected by Worldcoin will be stored in Brazil.

Buenos Aires authorities also reported that the company has not issued any public statement prohibiting minors from registering with the Worldcoin system. Worldcoin faces fines of over $1 million for these alleged illegal activities.