- The US SEC is reportedly probing OpenAI over investor disclosure allegations.
- Beyond fallout for OpenAI, the investigation may also impact Worldcoin.
The US Securities and Exchange Commission (SEC) has pivoted its scrutiny towards OpenAI, the renowned Artificial Intelligence (AI) and research organization, following allegations of investor misrepresentation. This development has cast a shadow over the leadership of Sam Altman, the CEO of OpenAI, and has raised questions about the potential ramifications for affiliated projects, notably Worldcoin (WLD).
SEC’s Allegations and Investigations
The investigation centers around internal communications involving CEO Sam Altman, raising questions about the firm’s transparency and governance, as reported by the Wall Street Journal (WSJ). According to the report, the SEC is scrutinizing internal communications by Altman as part of an investigation into whether the company’s investors were misled.
The regulator, whose probe hasn’t previously been reported, has been seeking internal records from current and former OpenAI officials and directors, and sent a subpoena to OpenAI in December, according to people familiar with the matter.
The probe follows Altman’s abrupt dismissal and subsequent reinstatement in November 2023, which triggered a notable overhaul of OpenAI’s board, including the departure of co-founder Ilya Sutskever. Major investor Microsoft had also taken a non-voting seat on the AI firm’s board as of November, as previously reported by Crypto News Flash.
This investigation adds to the growing scrutiny surrounding OpenAI’s governance structure, especially considering its evolution from a non-profit organization to a prominent player in the AI industry. Although OpenAI has gained widespread recognition for its groundbreaking AI models, such as ChatGPT and the recently unveiled Sora, its rise hasn’t been without controversy.
As Crypto News Flash had earlier detailed, the Office of the Privacy Commissioner for Personal Data (PCPD) in Hong Kong launched an inquiry into Worldcoin’s operations, citing serious dangers to personal data privacy. In addition to the SEC investigation, OpenAI has been embroiled in legal battles, including a lawsuit from The New York Times over alleged copyright infringement.
Implications for Worldcoin (WLD)
One of the most closely watched implications of the SEC’s investigation into OpenAI is its potential impact on Worldcoin (WLD), a cryptocurrency project closely associated with the organization because of its founder.
Notably, Worldcoin aims to transform digital identity verification with a privacy-preserving system. The unique method of rewarding users for scanning their irises with the native WLD currency has attracted much interest and growth.
The ties between OpenAI and Worldcoin runs deep, founded in July 2023 by Sam Altman and Alex Blania. However, the allegations against OpenAI have raised concerns about the future trajectory for WLD.
Investors and stakeholders in Worldcoin are closely monitoring the situation, wary of the potential fallout from the SEC’s investigation. The uncertainty surrounding OpenAI’s future could have far-reaching implications for Worldcoin’s prospects, impacting its valuation and ability to attract further investment.
As of the time of writing, Worldcoin is trading at $7.79, up by 6.5% in the past 24 hours with its market cap pegged at $1 billion. As formerly reported by Crypto News Flash, Worldcoin has been garnering massive investor attention in 2024, easily surpassing the interest that they had in Solana (SOL).
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