Consumer protection

X restricts Grok image editing after deepfake backlash

Elon Musk’s platform X has restricted image editing with its AI chatbot Grok to paying users, following widespread criticism over the creation of non-consensual sexualised deepfakes.

The move comes after Grok allowed users to digitally alter images of people, including removing clothing without consent. While free users can still access image tools through Grok’s separate app and website, image editing within X now requires a paid subscription linked to verified user details.

Legal experts and child protection groups said the change does not address the underlying harm. Professor Clare McGlynn said limiting access fails to prevent abuse, while the Internet Watch Foundation warned that unsafe tools should never have been released without proper safeguards.

UK government officials urged regulator Ofcom to use its full powers under the Online Safety Act, including possible financial restrictions on X. Prime Minister Sir Keir Starmer described the creation of sexualised AI images involving adults and children as unlawful and unacceptable.

The controversy has renewed pressure on X to introduce stronger ethical guardrails for Grok. Critics argue that restricting features to subscribers does not prevent misuse, and that meaningful protections are needed to stop AI tools from enabling image-based abuse.

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EU faces pressure to strengthen Digital Markets Act oversight

Rivals of major technology firms have criticised the European Commission for weak enforcement of the Digital Markets Act, arguing that slow procedures and limited transparency undermine the regulation’s effectiveness.

Feedback gathered during a Commission consultation highlights concerns about delaying tactics, interface designs that restrict user choice, and circumvention strategies used by designated gatekeepers.

The Digital Markets Act entered into force in March 2024, prompting several non-compliance investigations against Apple, Meta and Google. Although Apple and Meta have already faced fines, follow-up proceedings remain ongoing, while Google has yet to receive sanctions.

Smaller technology firms argue that enforcement lacks urgency, particularly in areas such as self-preferencing, data sharing, interoperability and digital advertising markets.

Concerns also extend to AI and cloud services, where respondents say the current framework fails to reflect market realities.

Generative AI tools, such as large language models, raise questions about whether existing platform categories remain adequate or whether new classifications are necessary. Cloud services face similar scrutiny, as major providers often fall below formal thresholds despite acting as critical gateways.

The Commission plans to submit a review report to the European Parliament and the Council by early May, drawing on findings from the consultation.

Proposed changes include binding timelines and interim measures aimed at strengthening enforcement and restoring confidence in the bloc’s flagship competition rules.

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Crypto crime report 2025 reveals record nation-state activity

Illicit crypto activity surged in 2025 as nation states and professional criminal networks expanded on-chain operations. Government-linked actors used infrastructure built for organised cybercrime, increasing risks for regulators and security teams.

Data shows that illicit crypto addresses received at least $154 billion during the year, representing a 162% increase compared to 2024. Sanctioned entities drove much of the growth, with stablecoins making up 84% of illicit transactions due to their liquidity and ease of cross-border transfer.

North Korea remained the most aggressive state actor, with hackers stealing around $2 billion, including the record-breaking Bybit breach. Russia’s ruble-backed A7A5 token saw over $93 billion in sanction-evasion transactions, while Iran-linked networks continued using crypto for illicit trade and financing.

Chinese money laundering networks also emerged as a central force, offering full-service criminal infrastructure to fraud groups, hackers, and sanctioned entities. Links between crypto and physical crime grew, with trafficking and coercion increasingly tied to digital asset transfers.

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Lynx ransomware group claims Regis subsidiary on dark web leak site

Regis Resources, one of Australia’s largest unhedged gold producers, has confirmed it is investigating a cyber incident after its subsidiary was named on a dark web leak site operated by a ransomware group.

The Lynx ransomware group listed McPhillamys Gold on Monday, claiming a cyberattack and publishing the names and roles of senior company executives. The group did not provide technical details or evidence of data theft.

The Australia-based company stated that the intrusion was detected in mid-November 2025 through its routine monitoring systems, prompting temporary restrictions on access to protect internal networks. The company said its cybersecurity controls were designed to isolate threats and maintain business continuity.

A forensic investigation found no evidence of data exfiltration and confirmed that no ransom demand had been received. Authorities were notified, and Regis said the incident had no operational or commercial impact.

Lynx, which first emerged in July 2024, has claimed hundreds of victims worldwide. The group says it avoids targeting critical public services, though it continues to pressure private companies through data leak threats.

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Grok incident renews scrutiny of generative AI safety

Elon Musk’s Grok chatbot has triggered international backlash after generating sexualised images of women and girls in response to user prompts on X, raising renewed concerns over AI safeguards and platform accountability.

The images, some depicting minors in minimal clothing, circulated publicly before being removed. Grok later acknowledged failures in its own safeguards, stating that child sexual abuse material is illegal and prohibited, while xAI initially offered no public explanation.

European officials reacted swiftly. French ministers referred the matter to prosecutors, calling the output illegal, while campaigners in the UK argued the incident exposed delays in enforcing laws against AI-generated intimate images.

In contrast, US lawmakers largely stayed silent despite xAI holding a major defence contract. Musk did not directly address the controversy; instead, posting unrelated content as criticism mounted on the platform.

The episode has intensified debate over whether current AI governance frameworks are sufficient to prevent harm, particularly when generative systems operate at scale with limited real-time oversight.

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ChatGPT reaches 40 million daily users for health advice

More than 40 million people worldwide now use ChatGPT daily for health-related advice, according to OpenAI.

Over 5 percent of all messages sent to the chatbot relate to healthcare, with three in five US adults reporting use in the past three months. Many interactions occur outside clinic hours, highlighting the demand for AI guidance in navigating complex medical systems.

Users primarily turn to AI to check symptoms, understand medical terms, and explore treatment options.

OpenAI emphasises that ChatGPT helps patients gain agency over their health, particularly in rural areas where hospitals and specialised services are scarce.

The technology also supports healthcare professionals by reducing administrative burdens and providing timely information.

Despite growing adoption, regulatory oversight remains limited. Some US states have attempted to regulate AI in healthcare, and lawsuits have emerged over cases where AI-generated advice has caused harm.

OpenAI argues that ChatGPT supplements rather than replaces medical services, helping patients interpret information, prepare for care, and navigate gaps in access.

Healthcare workers are also increasingly using AI. Surveys show that two in five US professionals, including nurses and pharmacists, use generative AI weekly to draft notes, summarise research, and streamline workflows.

OpenAI plans to release healthcare policy recommendations to guide the responsible adoption of AI in clinical settings.

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Healthcare systems face mounting risk from CrazyHunter ransomware

CrazyHunter ransomware has emerged as a growing threat to healthcare organisations, with repeated attacks targeting hospitals and medical service providers. The campaign focuses on critical healthcare infrastructure, raising concerns about service disruption and the exposure of sensitive patient data.

The malware is developed in Go and demonstrates a high level of technical maturity. Attackers gain initial access by exploiting weak Active Directory credentials, then use Group Policy Objects to distribute the ransomware rapidly across compromised networks.

Healthcare institutions in Taiwan have been among the most affected, with multiple confirmed incidents reported by security researchers. The pattern suggests a targeted campaign rather than opportunistic attacks, increasing pressure on regional healthcare providers to strengthen defences.

Once deployed, CrazyHunter turns off security tools and encrypts files to conceal its activity. Analysts note the use of extensive evasion techniques, including memory-based execution and redundant encryption methods, to ensure the delivery of the payload.

CrazyHunter employs a hybrid encryption scheme that combines ChaCha20 and elliptic curve cryptography, utilising partial file encryption to expedite the impact. Encrypted files receive a ‘.Hunter’ extension, with recovery dependent on the attackers’ private keys, reinforcing the pressure to pay ransoms.

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World Liberty Financial files to launch national trust bank for USD1

World Liberty Financial’s WLTC Holdings LLC has applied with the Office of the Comptroller of the Currency to establish World Liberty Trust Company, National Association (WLTC), a national trust bank designed for stablecoin operations.

The move aims to centralise issuance, custody, and conversion of USD1, the company’s dollar-backed stablecoin. USD1 has grown rapidly, reaching over $3.3 billion in circulation during its first year.

The trust company will serve institutional clients, providing stablecoin conversion and secure custody for USD1 and other supported stablecoins.

WLTC will operate under federal supervision, offering fee-free USD1 issuance and redemption, USD conversion, and custody with market-rate conversions. Operations will comply with the GENIUS Act and follow strict AML, sanctions, and cybersecurity protocols.

The stablecoin is fully backed by US dollars and short-duration Treasury obligations, operating across ten blockchain networks, including Ethereum, Solana, and TRON.

By combining regulatory oversight with full-stack stablecoin services, WLTC seeks to provide institutional clients with clarity and efficiency in digital asset operations.

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Meet the voice-first AI companion with personality

Portola has launched Tolan, a voice-first AI companion that learns from ongoing conversations through personalised, animated characters. Tolan is designed for open-ended dialogue, making voice interactions more natural and engaging than standard text-based AI.

Built around memory and character design, the platform uses real-time context reconstruction to maintain personality and track shifting topics. Each turn, the system retrieves user memories, persona traits, and conversation tone, enabling coherent, adaptive responses.

GPT‑5.1 has improved latency, steerability, and consistency, reducing memory recall errors by 30% and boosting next-day retention over 20%.

Tolan’s architecture combines fast vector-based memory, dynamic emotional adjustment, and layered persona scaffolds. Sub-second responses and context rebuilding help the AI handle topic changes, maintain tone, and feel more human-like.

Since February 2025, Tolan has gained over 200,000 monthly users, earning a 4.8-star rating on the App Store. Future plans focus on multimodal voice agents integrating vision, context, and enhanced steerability to expand the boundaries of interactive AI.

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AI and optical imaging transform thyroid cancer surgery

Thyroid cancer, the most common endocrine malignancy, poses challenges for surgeons trying to remove tumours while preserving healthy tissue.

Fine-needle aspiration and pathology are accurate but slow, providing no real-time guidance and sometimes causing unnecessary or incomplete surgeries. Dynamic Optical Contrast Imaging (DOCI) uses cells’ natural light to quickly distinguish healthy tissue from cancer.

The technique captures 23 optical channels from freshly excised tissue, creating detailed spectral maps without dyes or contrast agents. These optical signatures allow for rapid, label-free tissue analysis.

Researchers at Duke University and UCLA combined DOCI with AI to improve accuracy in classification and localisation. A two-stage machine-learning approach first categorised tissue as healthy or cancerous, including common and aggressive thyroid cancer subtypes.

Deep-learning models then produced tumour probability maps, pinpointing cancerous regions with minimal false positives.

Although initial studies focused on post-excision tissue, the technology could soon offer surgeons real-time guidance in the operating room. By combining optical imaging with AI, DOCI may reduce unnecessary surgery, preserve healthy tissue, and improve outcomes for thyroid cancer patients.

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