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Seoul Economic Daily: Character.AI Bankruptcy Raises Fears Over Chat Records

November 5, 2026

“Calli Schroeder, AI lead at the Electronic Privacy Information Center (EPIC), told the BBC that users disclose far more private and sensitive information when talking to anthropomorphized chatbots. She added that conversations can also contain information about third parties, such as complaints about family members or an acquaintance’s sexual orientation. Schroeder said in U.S. media reports that the federal bankruptcy code should spell out protections for handling personal information as a bankruptcy asset.”

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