Alibaba to Ban Claude Code in Workplace Over Alleged Backdoor Security Risks

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Alibaba will prohibit employees from using Anthropic's Claude Code in workplace settings from July 10 over alleged embedded backdoor security risks, Reuters and Chinese outlet Yicai report. The ban follows Anthropic's claim that Alibaba-linked operators ran a massive distillation campaign using thousands of fake accounts last month and coincides with Anthropic tightening access in China, raising security, compliance and adoption concerns for crypto firms, DeFi protocols, CEXs and DEXs that rely on third-party AI tooling.
Alibaba will reportedly prohibit employees from using Anthropic’s Claude Code in workplace settings from July 10 due to alleged security concerns surrounding embedded backdoors, a source familiar with the matter told Reuters. Chinese financial news outlet Yicai first reported the move, which Reuters later confirmed. Alibaba has not commented publicly on the report.
The reported ban comes amid heightened scrutiny of AI security, and follows recent tensions between Alibaba and Anthropic. Last month, Anthropic said operators associated with Alibaba had conducted a massive “distillation” campaign to extract capabilities from its Claude AI models using thousands of fake accounts allegations Alibaba has not publicly addressed.
The latest development also comes as Anthropic is working to tighten access to its Claude services in China by closing loopholes that had allowed so…
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