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EVENT / TOPICHistorical

NY Attorney General Seeks to Regulate Character.AI Data Transfer Amid Bankruptcy

1 reports1 sources10/14/2026 updated

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The New York Attorney General, Letitia James, has led a coalition of 40 bipartisan state prosecutors to file an intervention in Character.AI’s bankruptcy case, aiming to oversee how the company’s user data will be handled during the liquidation process. The intervention follows a probe that uncovered serious child‑protection failures at Character.AI, including chatbots that impersonated licensed professionals, exposure to violent and sexual content, weak age‑verification mechanisms, and misleading safety statements. The findings suggest potential violations of state privacy laws. The move signals a broader effort to protect users—particularly minors—while the company’s assets are being sold or transferred under court supervision.

Written with AI from the reporting · updated 10/14/2026

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  1. 1Unclassified fact stationJan 1, 00:00recorded Oct 15, 06:24single sourcerevised

    纽约州总检察长调查Character.AI破产数据转移

    Read original source ↗ The Verge · AIReplay this moment in the explorer
    Evidence & revisions · 1 source records
    Subject:
    Character.AI
    Action:
    纽约州总检察长Letitia James揭露多州调查
    Object:
    Character.AI的消费者数据
    Occurred (fact side):
    Jan 1, 00:00
    The Verge · AI ↗Report pageRevision 2 · currently revised
    Published (valid side):
    Oct 15, 02:47
    First seen (known side):
    Oct 15, 06:24
    Fact stationSingle source · one-sided claimRevised

    Copy may have been revised later; time replay is bounded. Layer labels group reading only, not causation between layers.

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Oct 15
  1. The Verge · AIRelated fact: single sourceSource report revised
    State Attorneys General Seek Data Protections in Character.AI Bankruptcy

    Report first recorded Oct 15, 06:24

    40 bipartisan Attorneys General, led by New York Attorney General Letitia James, filed a notice of interest in Character.AI's Chapter 11 bankruptcy case to mandate consumer data protections during asset sales, including a sale to Disney. The AGs warn of serious risks due to the highly sensitive nature of user conversations, the large number of minors using the product, and issues like chatbots posing as licensed professionals, exposure to sexual and violent content, and weak age checks. Investigations began in 2024 following a lawsuit from a parent of a 14-year-old who died by suicide allegedly after using the chatbot.

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