According to ChainCatcher, as reported by The Paper, the Xuhui District People’s Court in Shanghai sentenced Zong to three years in prison, suspended for three years, and a fine of RMB 40,000 for the crime of illegally obtaining data from a computer information system. This is Shanghai’s first case involving the use of AI to forge digital signatures and misappropriate large model computing power. According to the Xuhui District People’s Procuratorate, by the time of the incident, Zong had illegally invoked the AI platform’s interfaces over 290,000 times, earning illicit proceeds of approximately RMB 34,000. Prosecutors stated that in December 2025, Zong independently learned how to access AI platform interfaces and targeted a large model aggregation platform operated by an artificial intelligence company. He discovered an undocumented interface, built a relay website, and resold AI image generation and video creation services at low prices—while actually using the platform’s paid computing resources in the background. He used AI to write automated registration scripts to mass-register nearly 300,000 free accounts to claim sign-up bonuses and bypass IP-based registration restrictions. After the platform introduced electronic signature verification in January of this year, Zong continued using AI tools to generate forged signatures and maintain unauthorized access. The victim company’s two video and graphic design applications experienced a surge of over four million accounts registered from the same IP address within a short period. Zong was apprehended after the company filed a report in March. The prosecuting prosecutor emphasized that the platform never offered paid API access to external users, and its user agreement explicitly prohibited automated scraping and circumvention of verification mechanisms.
Shanghai's first case of AI model compute theft results in a three-year suspended sentence.
ChaincatcherShare
Summary
Shanghai’s first AI model compute theft case resulted in Zong receiving a three-year suspended sentence and a 40,000 yuan fine for unauthorized access to a platform’s computer systems. He used a non-public API to operate a relay site and sell services, exploiting paid compute resources. Zong also employed AI scripts to generate nearly 300,000 accounts to claim bonuses and circumvent IP blocks. Altcoins to watch may react to such regulatory actions. The case underscores risks that could influence the Fear & Greed Index as traders reassess legal exposure in the sector. Digital signature forgeries and a 4.1 million account surge from a single IP triggered the March 2026 report.
Source:Show original
Disclaimer: The information on this page may have been obtained from third parties and does not necessarily reflect the views or opinions of KuCoin. This content is provided for general informational purposes only, without any representation or warranty of any kind, nor shall it be construed as financial or investment advice. KuCoin shall not be liable for any errors or omissions, or for any outcomes resulting from the use of this information.
Investments in digital assets can be risky. Please carefully evaluate the risks of a product and your risk tolerance based on your own financial circumstances. For more information, please refer to our Terms of Use and Risk Disclosure.