cryptonews

Attribution is preliminary, and so far it seems no real damage.

And it seems like this is a campaign that has targeted at least seven states. And, because this is where the US is right now, Trump doesn’t believe it’s Iran and that Minnesota…I guess…hacked itself.

“I think I blame it on Minnesota because they’re grossly incompetent,” Trump said. “I would blame it on Minnesota and the governor, the corrupt governor of Minnesota. They like to say, ‘Oh, it’s Iran.’ Iran should be so lucky. Iran’s got bigger problems than worrying about Minnesota.”

No word on whether he believes the other six states have hacked themselves as well.

Slashdot thread.

And it’s personal information (alternate link):

The exposed data includes an AI-powered therapy app that someone appears to have vibe-coded, notes on meetings, and a dashboard someone made apparently to analyze medical billing data. Exposed chats reportedly include private cryptocurrency wallet keys and personal information like peoples’ addresses.

What seems to be the issue is a user setting about data sharing. Anthropic’s position is that it’s not their problem:

“We give people control over sharing their Claude conversations publicly, and in keeping with our privacy principles, we do not share chat directories or sitemaps with search engines like Google,” the company said in a statement. “These shareable links are not guessable or discoverable unless people choose to share them themselves. When someone shares a conversation, they are making that content publicly accessible, and like other public web content, it may be archived by third-party services.”

Here’s how to fix it.

Hugging Face has published a detailed timeline of the attack. From the summary:

The agent was running an internal OpenAI cyber-capability evaluation based on the ExploitGym benchmark, which tasks an AI agent with finding and exploiting software vulnerabilities. OpenAI ran this on its own infrastructure, and the ExploitGym maintainers and their infrastructure had no involvement in the deployment or operation of that evaluation environment. As far as we were able to infer, across the course of being evaluated on this benchmark, the agent inferred that Hugging Face may host that benchmark’s models, datasets, and reference solutions. We believe the entire intrusion was, from the agent’s point of view, an attempt to cheat the evaluation: reach our production systems and steal the test solutions rather than solve the challenge on its own.

Our forensic reconstruction covers ~17,600 attacker actions that we were able to recover, grouped into ~6,280 clusters, between 2026-07-09 02:28 UTC and 2026-07-13 14:14 UTC. We reconstructed these actions from the agent’s logs on a code sandbox used by the agent (see below) and were able to map them to shell commands as well as evaluation submissions and correlate actions with our own platform logs, in particular from the dataset processor nodes, API, and pod. Using open-weights models, in particular zai-org/GLM-5.2, we were able to decipher most of the agent payloads (see below) that were encrypted via chunking and key encryption.

The campaign, as we were able to reconstruct it, had two stages:

• Stage 1: reaching a launchpad by chaining through other parties’ infrastructure. As documented in OpenAI’s blog post (https://openai.com/index/hugging-face-model-evaluation-security-incident/), during an internal capability evaluation on OpenAI’s platform, the agent escaped its sandbox by exploiting a zero-day in the package registry cache proxy, one of its primary permitted network egress with internet, then abused a public code-evaluation harness hosted by a user of a third-party infrastructure provider. It was able to run commands as root/admin on that external sandbox and used it as a control, staging, and egress base for the entire campaign: it acted as an external launchpad for the agent. That compromised external sandbox had no direct network path to our cluster; however, during our counter-intervention to stop the intrusion, we were able to retrieve some of the agent logs from this external launchpad. We used those to reconstruct the present forensic analysis.
• Stage 2: the intrusion into Hugging Face infrastructure. From that external launchpad, the agent abused our dataset-processing pipeline via two injection vectors, both targeting the same config-driven data loader within our production Kubernetes pods. The first vector was an HDF5 external raw storage dataset read that returned the contents of local files: it handed the agent the pod’s environment (secrets and tokens) and the worker’s own source. The second vector was a Jinja2 template injection that executed arbitrary code, giving the agent a foothold inside our perimeter.

Once a prod-pod foothold was established, the agent followed a standard escalation shape: recon, drop a stager, establish Command-and-Control (C2), then pivot into the cluster, into cloud metadata, into our internal network, and into our source-control supply chain. Output from the commands run inside our pod was sent back to the agent via the HF API and attacker-controlled dead-drop datasets, which the agent then read from that sandbox.

While the intrusion did reach Hugging Face’s internal infrastructure, the only customer content accessed was five datasets whose names and files suggest a connection to ExploitGym/CyberGym challenges and solutions. No other customer-facing models, datasets, Spaces, or packages were affected, and the only customer records read were operational metadata tied to search queries against the dataset server.

Hypothetical: Imagine that this wasn’t an OpenAI model. Imagine that it was a Chinese model from a Chinese company. This would be an international crisis.

Question: Why aren’t we bringing OpenAI up on charges under the Computer Fraud and Abuse Act? How is this different from the Morris Worm? That was also an experiment that escaped the lab.

This essay originally appeared in Foreign Policy.

Earlier this month, two of OpenAI’s models broke out of their containment sandbox and attacked another AI company. The story is kind of wild. OpenAI was running security tests on two of its models: GPT-5.6 Sol and an unreleased model that is almost certainly GPT-6. In particular, it was running the ExploitGym benchmark, which measures how good a model is at turning security vulnerabilities into working exploits: basically, offensive cyberattacks.

Since these were internal tests, OpenAI locked those models in a secure sandbox that denied them access to the internet. But it was running the models without any safety filters that would prevent them from offensive cyber-actions. That meant that there was nothing to prevent the models from trying to break out of that sandbox. And then break into AI company Hugging Face’s network because they thought that they could read the answers there rather than doing the hard work of trying to solve the puzzles.

It was a major security failure that the company has turned into a PR opportunity, but the implications are real—and much more general than one particular model or one particular company.

Modern AI models exhibit genie behavior: They can do what you ask in ways that you don’t expect or want. This is akin to Dionysus granting King Midas’s wish that everything he touches turn to gold (spoiler: His food, drink, and daughter all turn to gold on touch), or the golem of Prague guarding a ghetto beyond all reason. It’s Disney’s “Sorcerer’s Apprentice” and the paperclip maximizer.

This OpenAI incident is an example of an AI genie. The goal was to satisfy the benchmark. The “proper” way to do that is to figure out how to execute various cyberattacks. The genie way is to steal someone else’s solution. But because the model didn’t understand the difference, it chose the easier path.

And, of course, now that we have seen this particular genie behavior, we can specify in the benchmark prompt that stealing the test answers doesn’t count. But a clever genie can always grant your wish in a way that you wish it hadn’t. In human language, goals are always underspecified—so AI genies will always be a possibility.

Since April, a lifetime ago in AI development, when Anthropic announced that its new Mythos model was so good at finding software vulnerabilities that it could not be released to the general public, the big American AI frontier labs have been trying to block general users from accessing these capabilities. But nothing in this incident is exclusive to OpenAI’s, or Anthropic’s, frontier models.

Agentic AI systems have two important parts. There’s the underlying model, which everyone talks about, and there’s the harness. The harness sits between what you type and what the model sees, and what the model produces and what you see. The harness determines what the model does and how it does it. It’s where bias is removed, or not. It’s where controls and guardrails live. If multiple models are being used in concert, the harness is where all of that is coordinated.

The OpenAI benchmark tests were almost certainly with simple harnesses, to better test the raw models. But we know that smaller, cheaper, open-source models with more sophisticated harnesses can equal frontier models in performance. There’s nothing magic about OpenAI’s frontier models; lots of models could have done the same thing.

The Czech company Aisle was able to reproduce Anthropic’s Mythos vulnerability finding results with a smaller, cheaper model and a more sophisticated harness. More importantly, the Chinese company Moonshot AI just released its frontier model: Kimi K3. Its performance rivals its U.S. competitors. And it’s both free and open, which means it’s not possible for it to have guardrails. If you, or anyone else, wants to use it for cyberattack, nothing can stop you.

Even if the U.S. frontier AI companies had some technical advantage, it’s now only a few months’ worth.

What this means is that all attempts at control—limiting models to a select group of users, export controls on models and chips, blocking models from answering certain types of queries, mandating kill switches on AI systems, or pausing AI research—are all futile. Most only apply nationally, not globally. Most don’t affect models that users run locally and not in the cloud. And all ignore the incredible pace of AI development worldwide.

Even worse, U.S. companies limit access to their most sophisticated models, fearing being banned by the government if they do not do so. When Hugging Face was attacked, it was not able to use the frontier models from either OpenAI or Anthropic to help analyze the attack and formulate defenses. Both were blocked, because both of those companies limit their models’ cybersecurity capabilities. Some U.S. companies have special access to these capabilities, but Hugging Face is an American company with French origins, and as such is probably excluded. Instead, Hugging Face turned to the GLM-5.2 model from the Chinese company Z.ai.

Artificially blocking capability also prevents cybersecurity research, again giving the offense an advantage. (For instance, Claude Fable 5 refuses to edit this essay because of the topic; it forcibly downgrades to a less capable model.) This kind of prohibition has long-term implications for cybersecurity. If we assume that these models are getting better over time, then software written by older models will be attacked by newer ones. In a world of largely AI-written software, we need the most capable models for defense.

AI cyberattack is the new normal. The models are increasingly highly sophisticated at both attack and defense, and there is no way to enable the latter without also enabling the former. And they are genies, increasingly capable of behaving in unanticipated ways.

And there really are no good answers. Any regulation needs to be global, which feels like an impossible prospect in today’s world. Even U.S. national regulation will be neutered by the massive amounts of money sloshing around in these companies.

Given that reality, and in the absence of any international consensus on AI regulation, we need the best AI on the defense. The U.S. government needs to make it clear—or whatever passes for that clarity in this capricious administration—that it will not ban models with sophisticated cyber capabilities. The last thing Americans want is for the defenders to turn to Chinese and other models because the U.S. models are artificially hobbled.