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 →
Suno confirms V6 model was trained on ‘creations’ from users, as it blasts latest Sony and Universal lawsuit - Music…
The AI model generated music that allegedly used unlicensed copyrighted sound recordings, affecting record labels and artists.
- Company involved
- Suno
- AI system involved
- Suno V6
1 source article · read the reporting →
Engineer.ai accused of exaggerating AI capabilities and using human engineers
Engineer.ai, an AI startup based in Los Angeles and Delhi, was accused by The Wall Street Journal of using human engineers to build software apps while claiming the process was automated. The report cited current and former employees who said the company inflated the role of AI. Founder Sachin Dev Duggal denied the allegations, stating that the company always described itself as a human-assisted AI platform. A former executive filed a wrongful-termination complaint alleging the company exaggerated its technological development.
- Company involved
- Engineer.ai
6 source articles · read the reporting →
Whitebridge AI faces complaint over false reputation reports
Whitebridge AI, a Lithuanian company, is accused of generating false reputation reports using unlawfully scraped social media data. The reports contained false warnings for 'sexual nudity' and 'dangerous political content'. Privacy group Noyb filed a complaint with the Lithuanian data protection authority, alleging violations of the GDPR. The complainants sought access to their data but received no response, and were later required to provide a qualified electronic signature to correct errors.
- Company involved
- Whitebridge AI
6 source articles · read the reporting →
Brave Browser Allegedly Sells Copyrighted Data for AI Training
Brave, a privacy-focused web browser, is accused of selling copyrighted data from its Brave Search API to train artificial intelligence models without proper licensing. The allegations, reported by Stack Diary, claim that Brave enables third parties to ingest copyrighted content through its API. Brave's head of search defended the practice, stating that the rights issues relate to search engine results, not the content itself. The controversy raises questions about ethical data use and transparency in the tech industry.
- Company involved
- Brave
- AI system involved
- Brave Search API
9 source articles · read the reporting →
Civitai dropped by cloud provider OctoML over CSAM image generation
Civitai, an AI image generation platform, was dropped by its cloud computing provider OctoML after an investigation by 404 Media found it was being used to generate images that could be categorized as child sexual abuse material (CSAM). The platform also faced scrutiny for nonconsensual deepfakes of celebrities and private citizens, primarily women. Civitai added new moderation filters in response, but OctoML terminated the business relationship.
- Company involved
- Civitai
- AI system involved
- Civitai
8 source articles · read the reporting →
Runway accused of training Gen-3 on scraped YouTube videos and pirated films
Runway, the AI company behind the Gen-3 video generator, is accused of training its model on thousands of YouTube videos and pirated films without permission, according to a leaked internal spreadsheet obtained by 404 Media. The spreadsheet lists thousands of YouTube channels belonging to major media companies and popular creators. A former employee said the company used proxies to scrape videos from YouTube. After being contacted by 404 Media, Runway stopped generating videos that named specific YouTubers, but did not respond to requests for comment.
- Company involved
- Runway
- AI system involved
- Gen-3
5 source articles · read the reporting →
MAJOR LAWSUIT ALERT!: Home Depot And Google Facing CIPA Lawsuit For Use Of Google’s Cloud Contact Center AI - natlawreview.com
The system recorded and transcribed customer service calls without consent, affecting the privacy of callers.
- Company involved
- Home Depot
- AI system involved
- Google Cloud Contact Center AI
1 source article · read the reporting →
Talkdesk Hit With Class Suit Over Customer Service Software - news.bloomberglaw.com
The system secretly recorded and analyzed customer service conversations of callers to Patagonia and Zumiez without consent.
- Company involved
- Talkdesk Inc.
- AI system involved
- CX Cloud
1 source article · read the reporting →
AI crawler causes $5,000 bandwidth costs for Read the Docs
In May 2024, an AI crawler downloaded 73 TB of zipped HTML files from Read the Docs, a documentation hosting platform, costing over $5,000 in bandwidth charges. The crawler repeatedly downloaded the same files due to a bug and lack of rate limiting. Read the Docs blocked the crawler and the company reimbursed the costs. Another crawler from Facebook downloaded 10 TB in June 2024, but Facebook did not respond.
- Company involved
- Read the Docs
- AI system involved
- AI crawler
10 source articles · read the reporting →
