Meta Sues Over AI Nude Scandal -- Deepfake Sextortion Sparks Global Crackdown

June 12, 2025 12:19 PM PDT | By EODHD

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Meta Sues Over AI Nude Scandal -- Deepfake Sextortion Sparks Global Crackdown — Image source: Kalkine Media

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Meta (NASDAQ:META) is taking legal action in Hong Kong, targeting Joy Timeline HK Ltd. for allegedly pushing so-called nudify appsAI tools that can strip clothes from images and generate fake nude content without consent. The apps, sold under the CrushAI name, were promoted on Facebook and Instagram before Meta flagged and removed them. According to the company, these tools are fueling a troubling rise in sextortion, blackmail, and digital abuse. Meta said Joy Timeline repeatedly tried to bypass ad review systems, even after their ads were taken down, by switching domains and disguising content.

Warning! GuruFocus has detected 5 Warning Sign with META. This isn't just another PR move. Meta says it's seeing concerning growth in this AI-driven abuse category and is now coordinating with other tech companies to share information on takedowns and violators. Offenders are also evolvingsome hide behind innocent-looking visuals, others spin up new websites within hours of being blocked. In response, Meta has rolled out smarter detection tech that can flag these ads even when they don't show nudity, signaling a shift toward more aggressive platform enforcement.

For investors, it's a double-edged signal. On one hand, Meta's AI infrastructure is being weaponized in ways that threaten user safety and regulatory complianceparticularly with global scrutiny mounting. Australia is preparing to ban under-16s from social media, and other governments are following suit. But on the other hand, Meta is responding with sharper AI governance, while simultaneously doubling down on its own AI ambitions. The balance between innovation and accountability could be a key driver of sentiment heading into 2025.

This article first appeared on GuruFocus. View Comments

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