Company: ORBS
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023549
Chunk: 130

Company: Eightco Holdings Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 2
Chunk 130
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onymous, 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 assets. In 2019, the Financial Action Task Force (“FATF”) adopted global standards
for virtual asset service providers (“VASPs”) requiring them to verify their customer’s identity and share sender and
recipient information (the “Travel Rule”). Jurisdictions that fail to implement the FATF VASP standards risk being placed
on the FATF “grey” or “black” lists, which could limit access to global banking systems and international financial
assistance.

48

Worldcoin’s
current proof-of-personhood model presents an inherent conflict with the existing VASP framework’s requirement for traceable, legally
verifiable customer identification. Because Worldcoin’s business model does not contemplate the manual collection and storage of
key information, the process does not comply with AML and KYC laws. This structural tension could lead regulators to view Worldcoin’s
compliance program as inadequate on its own, even if Worldcoin complies with the spirit of AML and KYC. Given the significant regulatory
requirements in many countries and the global importance of FATF and the Travel Rule, Worldcoin may have to either seek an exemption
or change in law in order to operate. This process could take months or years, may not ultimately be possible in many countries, and
violation of these laws could lead to significant fines. Any of the foregoing could impede Worldcoin’s adoption and adversely impact
the value of the Company and its common stock.

Worldcoin
is created and transmitted on a public blockchain network, Ethereum, which is a decentralized peer-to-peer network of computers running
the Ethereum protocol. If the Ethereum network is disrupted or encounters any unanticipated difficulties, including power outages or
grid failures, the value of WLD could be negatively impacted and there could be significant impact on the operation of financial and
other markets.

Worldcoin
has no ability to prevent or correct network disruptions, including power out