EQUIPThe Verge · 1h ago
Now that Character.AI is going bankrupt, what happens to all of its users’ data?
Executive Brief
The 30-second read
Bipartisan regulators led by the New York Attorney General have intervened in Character.AI's bankruptcy to secure consumer data protections. The group aims to prevent the unregulated sale of sensitive user information during the company's asset liquidation process.
- 01Forty state attorneys general filed a notice of interest in the Character.AI bankruptcy proceedings
- 02Regulators seek to impose legal requirements on data sold through the bankruptcy court
- 03The multi-state investigation targets regulatory issues surrounding the transfer of sensitive consumer information
- 04Legal actions aim to put all involved parties on notice regarding data protection obligations
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Business Travel Management 2026: Program Blueprint →AI-generated summary · Verify at source
New York Attorney General Letitia James revealed a years-long multi-state investigation against Character.AI as they now seek to require protections on consumer data sold through its bankruptcy proceeding. James is among 40 bipartisan AGs who filed a notice of interest in Character.AI's bankruptcy case "to put all parties on notice of the regulatory issues that […]