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Have they stopped sponsoring terrorism?

Are you talking about Hamas? Israel? I.C.E.? Climate activists? Really hard these days to guess what you're talking about, since anyone is easily accused of terrorism these days. Without context, this is a baseless comment without much value. I'm not even really ask you to clairfy your comment, but I'm asking you to think a bit harder next time and at the bare minimum show up with some concrete facts instead of baseless (political?) accusations.

I think it is because they are tied to Yandex (or used to be) which is Russian. I don't know how much it directly supports State funded terrorism but it is likely none.

You'd guess wrong, because modern Yandex is essentially Kremlin owned, so it is directly supporting it, not in a huge amount (on account of Kagi being relatively tiny company), but definitely not 'none'.

Also in the discussions about removal or at least asking to make it toggle-able, so users can make sure their requests and money are not forwarded to Russia have been shut off and ridiculed (including staff member saying "our views on the war differ" whatever that meant.

https://ounapuu.ee/posts/2025/07/17/kagi/

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