Company: ORBS
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023549
Chunk: 213

Company: Eightco Holdings Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part II, Item 1
Chunk 213
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 an identity. These groups argue that individuals in lower-income regions may have limited understanding of the
use of the data required to give fully informed consent. Opposition of this kind can produce both regulatory and reputational consequences.
While regulatory scrutiny is a risk, even in the absence of regulatory scrutiny, public criticism regarding privacy practices could damage
the project’s brand. With social media increasing the ability to communicate to large numbers of people in a short period of time,
negative public sentiment could occur quickly. Negative public sentiment could discourage new users from enrolling and cause current
users to close out their accounts. Loss of public confidence would likely limit market expansion, weaken strategic partnerships, and
reduce liquidity or demand for WLD, regardless of the project’s legal compliance. Allegations of data colonialism or exploitation
could discourage Orb operators, enterprise partners and prospective users from engaging with Worldcoin, slowing adoption even in markets
where the system is legal. Negative media coverage, NGO reports, or coordinated campaigns could also lead to investigations, mandatory
audits, and costly compliance obligations, any of which could materially reduce user growth, impair token demand, and damage Worldcoin’s
long-term prospects. Any of these events could have an adverse impact on the value of the Company’s common stock.

Worldcoin’s
proof-of-personhood model, on its own, is likely to not comply with current global KYC/AML requirements in many jurisdictions, including
in the US, UK and EU; the model of biometric scanning replaces the obligation to deliver documentation of a person’s country of
origin and proof of residence, for example, and therefore by itself is non-compliant with existing frameworks. Systems liked Wordcoin’s
“proof-of-personhood” do not verify identity but verify uniqueness.

Worldcoin’s
“proof-of-personhood” approach, which verifies that each participant is a unique human through biometric scanning while allowing
them to remain pseudonymous, is likely to not comply by itself with current know-your-customer (“KYC”) and anti-money laundering
(“AML”) obligations in many jurisdictions. Financial services and virtual asset regulations in the United States, the European
Union, India, and numerous other markets require service providers to collect and retain personally identifying information, such as
legal name, government-issued identification, and address, particularly if the transaction involve the transfer of financial assets.
By design, Worldcoin’s business directly conflicts with AML and KYC processes. Interestingly, the processes were developed because
of the pseudonymous ecosystem of digital