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It's fraud, and wire fraud in US, and it's a federal crime. But yeah, it sounds like a fake story.

What makes it sound fake?

The public confession of a crime part.

What about OpenAI’s breach of huggingface?

The fact that they apparently attempted to sandbox those tests would seem to be a clear difference between the two cases.

Fair point

They admitted it once they were forced (HF found out about it).