As AI systems increasingly rely on publicly available online content to train and generate answers, companies like Reddit are trying to draw firm lines over what is considered “public” and “proprietary” data. Reddit has now filed a lawsuit against Perplexity, accusing it of illegally collecting data through its platform. According to court documents filed Wednesday in a Manhattan federal court, Reddit said Perplexity ignored instructions not to scrape its content and continued to use Reddit data to generate AI answers.

Reddit exposes alleged data theft

The complaint says Reddit had explicitly blocked Perplexity from collecting its data, but the AI company’s “answer engine” still produced results containing Reddit content. “The increase was so dramatic that an outside observer hypothesized that the increase was due to Perplexity entering a licensing deal with Reddit,” the lawsuit said. “In truth, there is no license between Perplexity and Reddit.”

To prove its suspicion, Reddit designed a clever digital test. It created a “trap” post that could only be found by Google’s search engine. Google has a legitimate content-licensing deal with Reddit, and so any company without such a deal should have been unable to access the post. The company described it as the online equivalent of a “marked bill,” noting that if Perplexity’s system reproduced the contents of that hidden post, Reddit would know it had gone around its safeguards, possibly by pulling data through Google’s search results, known as SERPs.

Within hours, the supposedly private test post began showing up in responses generated by Perplexity’s AI tool. “The only way that Perplexity could have obtained that Reddit content and then used it in its ‘answer engine’ is if it and/or its co-defendants scraped Google SERPs,” the lawsuit stated. Reddit named three data-scraping companies in the suit: Oxylabs UAB, AWM Proxy, and SerpApi. It accused them of helping Perplexity gain unauthorized access to Reddit’s posts, or of selling Reddit’s data to Perplexity.

Meanwhile, Perplexity has rejected Reddit’s allegations. According to Jesse Dwyer, a spokesperson for Perplexity, the company “will not tolerate threats against openness and the public interest.” The company also said in a Reddit post after the lawsuit was filed that it “does not train AI models on content.” Representatives of the other companies named in the lawsuit also issued statements.

A spokesperson for SerpApi said it plans to “vigorously defend” itself in court. Oxylabs’ chief governance and strategy officer, Denas Grybauskas, said his company was “shocked and disappointed,” adding that Oxylabs “has always been and will continue to be a pioneer and an industry leader in public data collection.”

In August, internet infrastructure company Cloudflare revealed it had conducted a similar test to see if Perplexity was following web-crawling rules. Cloudflare said it created pages marked with code telling Perplexity’s bots not to access them, but it still found the AI company’s crawlers visiting the restricted pages. Cloudflare’s CEO, Matthew Prince, made headlines by comparing Perplexity’s behavior to that of “North Korean hackers.” “Some supposedly ‘reputable’ AI companies act more like North Korean hackers,” Prince wrote on X.

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With the rise of AI-generated content, Reddit is positioning itself as a space defined by verified human engagement. Huffman said the platform is defending itself against waves of synthetic content that risk diluting the trust and quality built over years.

Blocking bots and verifying users

To safeguard its ecosystem, Reddit is introducing systems that confirm users are real people, not bots or automated content creators. These new tools aim to preserve privacy while ensuring authenticity, without requiring users to disclose their real names. Huffman acknowledged that anonymous participation remains a core Reddit principle but stressed the need for stronger user verification.

Projects like Sam Altman’s World ID, which uses biometric verification without collecting personal details, are being explored as potential solutions. Reddit sees these technologies as a way to maintain both user anonymity and platform integrity as AI-generated content becomes more difficult to detect.

In addition to internal efforts, Reddit is also protecting its data externally. In May 2025, the company filed a lawsuit against Anthropic, accusing the AI firm of scraping Reddit content over 100,000 times. Huffman stated that the platform must take a stronger stance to defend user contributions from unauthorized use by third parties.

Human content as a competitive advantage

Reddit continues to attract AI companies like Google and OpenAI, who value its archives of real-world discussions for training language models. Huffman noted that unlike AI-written content, Reddit conversations reflect natural, human communication that is difficult to replicate.

More than 100,000 active communities contribute to the platform’s appeal. Huffman believes that this level of human engagement cannot be faked, and it remains Reddit’s key competitive advantage in an AI-saturated digital space.

Building features for brands and global growth

In June 2025, Reddit launched AI-based tools that assist brands in tracking user discussions in real-time and to feature community posts with sponsored posts. Apparently, about 40 percent of the comments made on Reddit refer to products or services of which a quarter has actual user reviews.

The new search tools now use direct quotations of users to enhance information accuracy and accessibility. The updates are targeted at serving global users and improving the platform’s ability to serve high-quality, successful content regardless of language.

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An example of such posts will require users to download certain software. These downloads are usually embedded with the Amos and Lumma crypto malware. According to reports, the trending source of sharing the malware is the cracked version of the TradingView application.

Scammers share Amos and Lumma malware on Reddit

These scammers have recently been lurking on crypto-related subreddits. According to their posts, the so-called cracked version of TradingView is free, and it has been cracked directly from an official version. The scammers claim that it would unlock premium features such as advanced charting tools for stocks, forex, crypto, and commodities.

According to Malwarebytes, both Windows and Mac files of the infected software are double-zipped. The final zip file is password-protected, which is unusual, as legitimate executable files are not compressed like that.

In the post by Malwarebytes, user data on Mac gets exfiltrated through a POST request to a server (45.140.13.244) hosted in Seychelles. The Mac installer features a newer AMOS variant. It is a popular stealer for macOS, and it checks the presence of a virtual machine. If detected, the program exits with error code 42.

The Windows version loads the payload through an obfuscated bat file that runs a malicious script. Malwarebytes linked the Windows version to a host ‘cousidporke[.]icu’ registered in Russia a week ago.

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Before he pulled the trigger, he loaded a revolver and asked that a meme coin be made after him if he died. “If I die, make me a meme coin.” The gun misfired twice, but on the third attempt, it fired.

While his livestream went on for 30 minutes after he shot himself, he laid down bleeding out, while the crypto community reacted, creating numerous meme coins after him. According to reports on Reddit and X, he had been suffering from mental health challenges. Some of the users believed that his suicide was tied to his recent breakup with a girl he usually talks about, but stopped two weeks before the suicide.

The crypto community turns a trader’s death into a meme coin

Some minutes after he died, a user created a meme coin called Mistacoin, sending him 70% of the total supply. However, X users have shown mixed reactions to the move, with some users purchasing the tokens, while others condemned the attitude.

“So let me get this straight. This guy starts streaming live on X. Gets scammed. Asks for refunds. Pulls out a six-shooter. Says ‘If I die, make a meme out of me,’ and pulls the trigger three times. Dies. The stream continues for 30 minutes. And people instantly create a meme coin? WTF?” a user said.

“The meme coin industry is pure evil,” another person wrote. “This guy literally went live to play Russian Roulette to pump a coin, and it ended up killing him.”

“I’m not gonna post the video or even a pic cause it’s so messed up, but a guy actually just shot himself in the head with the final words “I hope you all turn this into a memecoin.” And literally what do you think mfers here did right away? If you’re trading this, you’re sick af,” another user said.

While most users have condemned the move, others are suspecting something fishy. While the death happened in the most bizarre circumstances, no news outlet has yet to report the incident. Also, authorities have still not released an official statement. His identity remains unknown, with the only information available the ones supplied by users from X and Reddit.

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The moderator noted that due to this reason, they felt uncomfortable promoting their content on X, especially with the various things that Elon Musk, the owner of the platform has done. Reports claim that Shock4ndAwe is referring to the salute made by Musk while he was making an address during Donald Trump’s inauguration. Meanwhile, Musk has denied the salute, noting that people have been mistaken.

Reddit’s largest PC gaming community bans X links

After the announcement, the moderators in the community have banned users from posting links to X posts. However, users are allowed to only share screenshots. The moderators noted that users can link directly to posts, instead of linking to X posts. This way, the mods will not limit user experience and freedom of discussion.

Elon Musk has yet to make a public post about the news because he always sees what is going on in the gaming community. Before now, he was accused of cheating because of his account-boosting strategy for PoE. The gaming community has always discussed things to note in his livestream, noting that he is barely familiar with the PoE UI.

The suspicion was because Musk was playing at the HC level of 97. Musk has also come out to note that users can boost their accounts, noting that it is no crime as it serves better against high-ranked players. Musk has not apologized about the move, with no plans to do so in the future.

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However, players have noted that some players use the showcases to look at other players’ cards instead of earning Pokémon TCG Pocket shop tickets. Most players have called out the act, citing that it is less than ideal. According to Reddit user AtomicBlue, the showcases usually waste a lot of space.

Pokémon TCG players call out the underwhelming showcase UI

AtomicBlue shared an image displaying cards and backgrounds together as the owners would see. The game still separates both entities during their showcases. The background image fits alongside a small thumbnail of a card, something that the players have called underwhelming.

The criticism ended up on the front page of the TCGP subreddit, receiving numerous upvotes from members of the group. This means that most of the players want the developers to do something about how the showcases operate.

Although Pokémon TCG launched in October 2024, players have demanded lots of changes to the game. Consequently, it is unknown if its developer DeNa will be open to listening to criticism and advice from its players.

While the features would pacify its users, the developers have announced new features that will entertain its players. The company recently announced the launch of a trading feature that the developers will unveil before the end of January 2025.

However, players who want the showcases to change will have to keep their fingers crossed about the developer’s actions. Until then, they can continue to enjoy the game while immersing themselves in the new features that have been rolled out.

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Community Points: A Brief Overview

Launched in 2020, Community Points were Ethereum tokens stored in Reddit’s Vault, a dedicated cryptocurrency wallet. They were designed to act not only as incentives but also as markers of reputation within Reddit communities. Once earned, these points were irrevocable, remaining with the users and offering them special features like unique badges and animated emojis. Additionally, the points had a wider internet applicability; users could display them across various platforms, thanks to the decentralized nature of blockchain.

However, the primary challenge came with scaling this feature. Initially utilizing the Ethereum network, Reddit soon faced limitations in transaction fees and bandwidth. This led the company to migrate the Community Points system to Arbitrum Nova, an alternative built on top of Ethereum in 2022, with promises of ultra-low-cost transactions and robust security. Despite this migration, scalability remained an insurmountable hurdle for Reddit.

Shifting Focus to Alternative Incentive Programs

Hence, Reddit has been exploring other avenues for community rewards and incentives. The Contributor Program is one such recent launch that allows users to convert Reddit gold and karma into cash. According to Rathschmidt, a user needs to earn at least 10 gold within a month to be eligible for a monthly withdrawal. Moreover, Reddit users with a total of over 5,000 karma can earn $1 per gold. Rathschmidt emphasized that the decision to discontinue Community Points is not aimed at making room for the Contributor Program. Instead, the focus is on scaling products that are more accessible and beneficial to a broader user base.

While the Community Points program is being phased out, Reddit is not withdrawing from the concept of rewarding its user base. Existing rewards programs like the moderator rewards program will continue. Rathschmidt noted that features purchasable through Community Points, such as gifs, should be available to any community, signaling Reddit’s ongoing commitment to community governance and user engagement.

Despite the pivot away from blockchain-based rewards, Reddit remains invested in evolving its platform. The end of the Community Points program signifies a transition, not a step back. As the platform continues to adapt, users can expect to see more scalable and accessible rewards systems that aim to enrich the Reddit experience. Significantly, while Community Points may be making an exit, Reddit’s pursuit of community-driven engagement remains steadfast.

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