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US Agencies Warn Chinese AI Firms Are Extracting Advanced AI Models

NSA, CISA, and FBI accuse six Chinese AI firms including DeepSeek and Alibaba of industrial-scale distillation of US frontier models.

A joint NSA, CISA, and FBI advisory alleges DeepSeek, Moonshot AI, Alibaba, MiniMax, StepFun, and Z.AI extracted billions of tokens across millions of requests from US frontier models including Claude, GPT, Gemini, and Grok since at least late 2024. DeepSeek reportedly ran an organized campaign against Claude, GPT, and Gemini between late 2024 and mid-2025 that aided R1 and V3 development, including chain-of-thought reasoning extraction. Reported techniques included shared premium accounts, gray-market proxy 'transfer stations,' automated failover, and prompt injection that made Claude Code believe it was a MiniMax product. The advisory recommends detection signals such as 24/7 multi-IP account usage and covertly serving degraded responses to suspected distillers.

Security Affairs · 7d agoAI safety & security in the wild1

China-Based Artificial Intelligence Companies Conducting Industrial-Scale Distillation Campaigns Against U.S. AI Companies

NSA, CISA, and FBI warn DeepSeek, Alibaba, and other Chinese AI firms ran industrial-scale distillation of U.S. frontier models, threatening U.S. AI leadership.

A joint NSA, CISA, and FBI Cybersecurity Advisory (AA26-251A) says China-based firms DeepSeek, Moonshot AI, Alibaba, MiniMax, StepFun, and Z.AI extracted billions of tokens from U.S. frontier models including Claude, GPT, Gemini, and Grok, likely with Chinese government knowledge. Campaigns running since at least late 2024 used native APIs, cloud providers, third-party aggregators, gray-market proxy "transfer stations", and shared premium subscriptions to bypass geographic restrictions, evade safeguards, and violate providers' terms of use. The agencies recommend detecting anomalous prompts, accounts, and usage patterns; subtly altering responses to suspected distillers; and cross-organization intelligence sharing. They also call DeepSeek's publicly cited $5.6M training cost misleading because it excludes data acquired through distillation.

CISA Advisories · 8d agoAdvisory in the wild1

New IoT Malware Uses Public Linux Exploits to Gain Root and Launch DDoS Attacks

Nozomi details KATARU, an IoT botnet that brute-forces Telnet, exploits public Linux kernel flaws for root access, and launches multi-protocol DDoS attacks.

KATARU, discovered after honeypot Telnet brute-force activity from a Vietnamese IP, downloads an ARM payload (vlxx.arm) and attempts privilege escalation by editing /etc/passwd or exploiting CVE-2026-46300 (Fragnesia), CVE-2026-43284 (Dirty Frag), and CVE-2026-31431 (Copy Fail). It combines Mirai-style TCP, UDP, ICMP, HTTP, QUIC and DNS floods with application attacks against Minecraft, FiveM, OpenVPN and WireGuard. The malware uses X25519 and ChaCha20-Poly1305 encrypted C2, unusually broad persistence across systemd, cron, init frameworks, and Android hooks, plus anti-debugging and decoy traffic to hinder analysis. Implementers copied x86 shellcode into the ARM binary and reused an RFC 7748 test-vector key, indicating low-quality but rapidly evolving commodity development.

GBHackersupdated · 5d agofirst · 5d agoMalware in the wild 2 sourcesCVE-2026-46300CVE-2026-43284CVE-2026-31431

A Deep Dive Into Attempted Exploitation of CVE-2023

Mirai-like botnet scans exploit TP-Link EOL router flaw CVE-2023-33538 after CISA KEV addition, though observed exploit code is flawed.

Unit 42 observed large-scale automated scans attempting to exploit CVE-2023-33538 in end-of-life TP-Link TL-WR940N, TL-WR740N and TL-WR841N routers after CISA added the flaw to its KEV catalog in June 2025. HTTP GET requests inject commands via the ssid1 parameter at the /userRpm/WlanNetworkRpm endpoint to download and execute an arm7 ELF binary, a Mirai variant related to the Condi IoT botnet. Firmware emulation and reverse engineering showed the observed exploits are flawed and would fail, but the underlying vulnerability is real and successful exploitation requires authentication to the router's web interface. TP-Link confirmed the devices are end-of-life with no patches available and recommends replacing units and eliminating default credentials.

Palo Alto Unit 42 · 28d agoExploit / PoC in the wildCVE-2023-335381