Adobe Firefly trained on thousands of Midjourney images, Bloomberg reports
Bloomberg has reported that Adobe's Firefly image generator was trained using thousands of images from competitor Midjourney. Adobe says these made up about 5% of the training data and were part of the Adobe Stock library. The company has marketed Firefly as ethically trained and offered enterprise customers indemnity against copyright claims. Adobe responded that all Adobe Stock images undergo moderation, but the report has raised questions about Firefly's copyright safety.
- Company involved
- Adobe
- AI system involved
- Firefly
7 source articles · read the reporting →
Users jailbreak Luma Labs Dream Machine to generate porn
Users have jailbroken Luma Labs' Dream Machine, an AI video generator, to create explicit videos. The system's safeguards were bypassed to generate pornographic content. The videos are crude but demonstrate the potential for widespread AI-generated porn. Luma Labs' terms of service prohibit such content.
- Company involved
- Luma Labs
- AI system involved
- Dream Machine
3 source articles · read the reporting →
Dahua Exposed for Uyghur Tracking Software in Surveillance Systems
Dahua Technology's publicly available SDK was found to contain code for detecting Uyghur ethnicity, enabling Chinese police to covertly track the persecuted minority. The revelation led to widespread criticism, and Dahua removed the SDK after being contacted by IPVM but did not comment. The company had previously been sanctioned by the US for complicity in human rights abuses against Uyghurs, and its software is part of a massive surveillance apparatus in Xinjiang.
- Company involved
- Dahua Technology
- AI system involved
- Dahua SDK
1 source article · read the reporting →
TerraUSD and Luna algorithmic stablecoin collapse wipes out $60 billion
The algorithmic stablecoin TerraUSD (UST) and its sister token Luna collapsed in May 2022, losing nearly all their value. The system, developed by Terraform Labs, used an algorithm to maintain a $1 peg for UST by swapping with Luna. A bank run triggered by large withdrawals and a drop in yields caused a death spiral, wiping out approximately $60 billion in market value. Do Kwon, the founder, attempted to save the peg using Bitcoin reserves but ultimately failed.
- Company involved
- Terraform Labs
- AI system involved
- TerraUSD (UST) and Luna
10 source articles · read the reporting →
AI companion apps Chattee Chat and GiMe Chat leak intimate conversations of 400,000 users
Two AI companion apps, Chattee Chat and GiMe Chat, developed by Hong Kong-based Imagime Interactive Limited, exposed millions of intimate conversations and over 600,000 images from over 400,000 users. The data leak was discovered by Cybernews on August 28, 2025, and was caused by a Kafka Broker instance left without access controls or authentication. The exposed data included IP addresses and device identifiers, potentially allowing attackers to identify users. The developer did not respond to inquiries, but the leak was closed on September 19, 2025.
- Company involved
- Imagime Interactive Limited
- AI system involved
- Chattee Chat - AI Companion and GiMe Chat - AI Companion
4 source articles · read the reporting →
Moonwell loses $1.78M after AI-generated code from Claude Opus 4.6 causes oracle pricing error
DeFi lending protocol Moonwell lost $1.78 million after an oracle pricing error in smart contract code partially written by Anthropic's Claude Opus 4.6 model. The error valued cbETH at approximately $1.12 per token instead of its actual market price of nearly $2,200, triggering instant liquidations. Moonwell contained the issue by reducing the cbETH borrow cap, but users suffered catastrophic losses. The incident has sparked debate about the risks of AI-generated code in smart contracts.
- Company involved
- Moonwell
- AI system involved
- Claude Opus 4.6
4 source articles · read the reporting →
OpenClaw vulnerabilities enable data leakage and prompt injection
In January 2026, researchers at Giskard exploited a deployment of OpenClaw, an open-source agentic AI. They found that architectural weaknesses in the Control UI and session management allowed prompt injection and unauthorized tool use, leading to potential data leakage across user sessions. The article outlines hardening steps to prevent such vulnerabilities.
- AI system involved
- OpenClaw
6 source articles · read the reporting →
Herbert Brooks v. Lowes Home Centers LLC (W.D. Louisiana): AI-hallucinated content in court filing, Monetary Sanction; CLE
Generated a legal brief with hallucinated case law, filed in court.
- AI system involved
- Claude
1 source article · read the reporting →
Disney accused of using AI imagery for Loki promotional materials
Disney is accused of using AI-generated imagery in promotional materials for the second season of the Disney+ series Loki. An illustrator on X flagged the image, pointing out telltale signs of AI generation in the background. The article states that the image appears to be based on a Shutterstock stock photo, and that Disney did not respond to the allegations. The use of AI is alleged to harm artists and photographers who rely on licensing income.
- Company involved
- Disney
8 source articles · read the reporting →
Prisma Labs wins arbitration in Lensa biometric privacy lawsuit
Artificial intelligence company Prisma Labs is accused of violating Illinois' biometric privacy law by collecting facial geometry data from users of its Lensa app. A proposed class action was filed, but a California federal judge granted Prisma's motion to compel arbitration because users agreed to it during sign-up. The plaintiff alleges the app collected his facial data without consent.
- Company involved
- Prisma Labs Inc.
- AI system involved
- Lensa AI
8 source articles · read the reporting →
LAION temporarily takes down 5B dataset after Stanford finds potential CSAM
Stanford researchers reported that the LAION 5B training dataset contains potentially illegal content in the form of child sexual abuse material (CSAM). LAION, a non-profit organization that provides datasets for machine learning research, acknowledged the reports and temporarily took down the datasets to ensure they are safe before republishing. LAION is working with the Internet Watch Foundation and the Hamburg State Data Protection Commissioner to address the issue.
- Company involved
- LAION
- AI system involved
- LAION 5B
6 source articles · read the reporting →
