Deepfakes scandal puts Elon Musk and X under scrutiny in France

French prosecutors have escalated concerns about deepfakes linked to Elon Musk’s platform X, alerting US authorities to suspicions that manipulated content may have been used to influence the company’s valuation.

According to the Paris prosecutor’s office, the controversy surrounding sexually explicit deepfakes generated by Grok, X’s AI tool, may have been deliberately amplified to artificially boost the value of X and its associated AI entity ahead of a planned stock market listing in June 2026.

Authorities in France confirmed they had contacted the US Department of Justice and legal representatives at the Securities and Exchange Commission to share findings related to the deepfakes investigation and potential financial implications.

The case builds on an ongoing French probe into X, which initially focused on alleged algorithmic interference in domestic politics. Investigations have since expanded to include the spread of Holocaust denial content and the dissemination of sexualised deepfakes through Grok.

French regulators have taken additional steps, including summoning Musk for a voluntary interview and conducting searches at X’s local offices, actions he has described as politically motivated. Parallel investigations have also been launched in the UK and across the European Union into the use of AI tools to generate harmful deepfakes involving women and minors.

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Social media ban in Ecuador targets youth crime recruitment

A proposal to restrict minors’ online activity is gaining momentum in Ecuador, where lawmakers are considering a social media ban for children under 15 as part of a broader response to rising organised crime.

Under discussion in the National Assembly, the initiative introduced by Assembly member Katherine Pacheco Machuca would amend the Code of Childhood and Adolescence to block access to platforms enabling public interaction, content sharing, and messaging. The proposal defines social networks broadly, covering services that allow users to create accounts, connect with others, and exchange content.

Unlike similar debates elsewhere, the justification for the social media ban is rooted less in mental health or privacy concerns and more in security. Ecuador has experienced a sharp deterioration in public safety, with rising homicide rates, expanding criminal networks, and increasing pressure on state institutions.

Recent findings from Ecuador’s Organised Crime Observatory indicate that around 27% of minors approached by criminal groups report initial contact through social media platforms. Surveys conducted by ChildFund Ecuador further suggest that vulnerable adolescents are increasingly exposed to recruitment tactics that combine economic incentives with normalised portrayals of violence.

In that context, the proposed social media ban is framed as a preventative measure against criminal recruitment rather than solely a child protection tool. The initiative forms part of a wider regulatory shift, including new cybersecurity legislation and draft laws targeting recruitment practices conducted through digital channels.

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US releases national AI policy framework

The Trump Administration unveiled a national AI framework to boost competitiveness, security, and benefits for Americans. The plan seeks to ensure that AI innovation supports all citizens while maintaining public trust in the technology.

Six key objectives form the foundation of the policy. These include protecting children online, empowering parents with tools to manage digital safety, strengthening communities and small businesses, respecting intellectual property, defending free speech, and fostering innovation.

The framework also prioritises workforce development to prepare Americans for AI-driven job opportunities.

Federal uniformity is considered critical to the plan’s success. The Administration warns that a patchwork of state regulations could stifle innovation and reduce the United States’ ability to lead globally.

Congress is encouraged to collaborate closely to implement the framework nationwide.

The Administration emphasises that the United States must lead the AI race, ensuring the benefits of AI reach all Americans while addressing challenges such as privacy, security, and equitable access to opportunities.

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Deepfake abuse crisis escalates worldwide

AI-generated deepfake abuse is emerging as a serious global threat, with women and girls disproportionately affected by non-consensual and harmful digital content. Advances in AI make it easy to create manipulated content that can spread across platforms within minutes and reach millions.

Data highlights the scale of the issue. The vast majority of deepfake content online consists of explicit material, overwhelmingly targeting women.

Accessible and often free tools have lowered the barrier to entry, enabling widespread misuse. At the same time, the ability to endlessly replicate and share such content makes removal nearly impossible once it is published.

Legal responses remain fragmented, with many pre-existing laws leaving gaps in addressing AI-generated deepfake abuse. Enforcement issues, such as cross-border challenges and limited digital forensics capabilities, make it unlikely that perpetrators will face consequences.

Pressure is mounting on governments and technology platforms to act. Calls for reform include clearer legislation, faster obligations to remove content, improved law enforcement capabilities, and stronger support systems for victims.

Without coordinated global action, deepfake abuse is set to expand alongside the technologies enabling it.

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Crypto tax reform in Brazil pushed to 2027

Brazil has postponed discussions on its upcoming cryptocurrency tax framework until after the October 2026 presidential elections, signalling a cautious political approach to digital asset regulation.

Finance officials aim to avoid introducing contentious fiscal measures during an election cycle, despite earlier plans to launch a public consultation later this year.

Recent tax reforms have already marked a significant shift in Brazil’s crypto policy. A flat 17.5% tax on capital gains was introduced in June 2025, replacing earlier exemptions for smaller transactions.

Previous rules allowed tax-free monthly sales up to 35,000 Brazilian real, while higher volumes were subject to progressive rates. Banco Central do Brasil classified stablecoin transfers as foreign exchange, making them subject to standard currency tax rules.

Authorities are considering broader crypto taxes, including on assets used for international payments. Alignment with the Crypto-Asset Reporting Framework also remains on the agenda, indicating a move towards tighter oversight and global regulatory coordination.

Strong adoption highlights the policy’s importance, with Brazil leading Latin America and ranking among the world’s top crypto markets. Regional data shows a surge in adoption, strengthening Brazil’s role in the global digital asset market.

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EU lawmakers call for faster enforcement of digital competition rules

Members of the European Parliament are calling for more rapid progress in implementing the bloc’s digital competition framework, with particular focus on the Digital Markets Act.

In a recent resolution, lawmakers urged the European Commission to ensure timely and effective enforcement of the rules designed to regulate large online platforms. The legislation aims to address concerns around market dominance and promote fair competition across the digital economy.

The discussions reflect ongoing concerns that delays in enforcement could undermine the framework’s effectiveness, particularly as major technology companies continue to expand their influence. Platforms such as Google, Apple and Meta are among those expected to comply with the new obligations.

At the same time, policymakers are balancing regulatory oversight with the need to maintain innovation and competitiveness. The debate forms part of a broader effort in the EU to strengthen digital governance and reinforce the region’s position in global technology markets.

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Microsoft reduces Copilot features to improve user experience

Microsoft is scaling back the presence of Copilot across Windows 11, signalling a shift toward a more selective and user-focused approach to AI integration.

Microsoft said it will reduce Copilot features in several built-in applications, including Photos, Widgets, Notepad and the Snipping Tool. The company described the move as part of a broader effort to integrate AI only where it delivers clear value to users.

The decision follows growing concerns about ‘AI bloat’ and user trust, with recent research indicating rising scepticism around AI. Microsoft is responding by prioritising more practical and reliable use cases rather than widespread deployment.

The change also aligns with earlier adjustments to Copilot plans, including shelving some system-level integrations and delaying features such as Windows Recall due to privacy and security concerns. Even after launch, vulnerabilities in Recall have continued to surface, reinforcing the need for caution.

Beyond AI, Microsoft is introducing several usability improvements to Windows 11. These include allowing users to reposition the taskbar, enhancing File Explorer performance, refining Widgets, and giving users greater control over system updates.

The update signals a broader recalibration, as Microsoft balances innovation with user expectations, aiming to deliver AI features that are both useful and trusted within everyday computing environments.

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US senator proposes AI rules for children

A US senator has introduced a draft framework to establish nationwide AI rules, with a focus on child safety and copyright protection. The proposal seeks to create a unified federal approach to replace state laws that differ.

The plan would require developers to implement safeguards for minors, including age verification, data protection and mechanisms to report harm. Companies could also face legal action over failures linked to AI system design.

Copyright measures include new standards for identifying AI-generated content and preventing tampering. Authorities would also develop cybersecurity guidelines to support the transparency and authenticity of content.

Debate over this in the US continues over the balance between regulation and innovation, with some stakeholders warning of legal and economic risks. Discussions between lawmakers and the administration are expected to shape a final framework.

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FBI warns of fake tokens targeting Tron wallets

The FBI’s New York Field Office has warned that fraudulent tokens impersonating the agency are being airdropped to Tron wallets, with recipients threatened with ‘total block’ of assets unless they submit personal information via phishing sites.

At least 728 wallets were affected, some holding over US$1 million in USDT, when the warning was issued on 19 March.

The scam warns users that their wallets are ‘under investigation’ and instructs them to complete an online anti-money-laundering form. The FBI urged crypto holders to ignore these messages and avoid entering any personal data on linked websites.

Attackers exploit Tron for its fast and low-cost transactions, using bots to distribute tokens widely and generate spoofed addresses.

Impersonation scams have surged dramatically in 2025, with Chainalysis reporting a 1,400% year-over-year increase. Total crypto fraud losses are estimated at US$17 billion, with AI-assisted scams proving far more profitable than traditional schemes.

The FBI previously ran a blockchain sting using Ethereum tokens, resulting in indictments and the seizure of millions in assets.

The bureau encourages anyone who receives the fake FBI tokens to report the incident to the Internet Crime Complaint Centre to help combat ongoing crypto fraud.

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Firefox adds VPN and AI tools

Mozilla is preparing a major update to its Firefox browser, introducing a built-in VPN and new AI-powered tools. The company says the changes aim to strengthen privacy and give users greater control over browsing.

The integrated VPN will hide the user’s location and IP address while offering a limited monthly data allowance in selected regions. The feature replaces a previously separate paid service and will be built into the browser.

New AI tools will support tasks such as summarising content and comparing products without leaving a web page. Additional features include split-screen browsing and tools to organise notes across tabs.

The update also introduces redesigned settings and a refreshed interface to improve usability. Mozilla says the changes are intended to create a more personalised and modern browsing experience.

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