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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.
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Infostealers Are Hijacking Claude Sessions and Draining Subscriptions
Infostealers hijacked active Claude sessions to bypass 2FA, drain paid usage and run unauthorized charges; Anthropic is revoking sessions and refunding.
Anthropic confirmed that infostealer malware on user machines stole active Claude login sessions, letting attackers bypass passwords, MFA, and SSO and drain paid usage and run unauthorized charges. Affected families identified on Windows include Vidar, LummaC2, StealC, RedLine, and Acreed, plus Atomic Stealer on a small number of Macs; the malware typically arrived via unofficial downloads or malicious apps. Anthropic signed users out, removed saved payment cards, revoked affected sessions, and is refunding unauthorized charges, noting phones and tablets were not involved.
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Hackers Advertise Uncensored Luciferus AI Service on Underground Forums
Sophos CTU found Luciferus, an uncensored criminal AI subscription service on the Exploit forum that returned RAT source code on request.
Sophos Counter Threat Unit discovered Luciferus advertised on August 24, 2026 on the Exploit forum by persona 'Optimus_Prime', claiming a proprietary 120-billion-parameter uncensored model that analysts assess with low confidence may be built on Alibaba's Qwen. Subscriptions run $35-$75 monthly, with a VIP 'Individual Embodiment' tier offering a separately deployed model trained on customer data. In testing, the Junior model generated Python remote-access-trojan source code, though Sophos did not execute or verify it. The service extends the WormGPT/FraudGPT lineage into structured commercialization with tiered pricing resembling mature SaaS businesses.
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Uncensored AI sold on hacking forum as alternative to ChatGPT and Claude jailbreaks
Sophos found Luciferus, an uncensored AI subscription service likely built on Qwen, sold on the Exploit forum and capable of generating working malware code.
Sophos Counter Threat Unit found an ad for 'Luciferus' posted August 24 on the Exploit forum by a persona named 'Optimus_Prime', claiming a proprietary 120-billion-parameter model that answers requests without ethical restrictions. Sophos assesses with low confidence it is based on Alibaba's open-source Qwen family. Forum tiers cost $35-$75/month, while the website lists Junior/Middle/Pro tiers at $22-$47.14; a test prompt on the Junior tier returned Python remote access trojan source code. Sophos warns such services lower barriers for less skilled cybercriminals and outlast jailbroken mainstream LLMs.
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