{"id":61003,"date":"2026-07-02T22:47:46","date_gmt":"2026-07-02T22:47:46","guid":{"rendered":"https:\/\/www.theregister.com\/a\/5266201"},"modified":"2026-07-02T22:47:46","modified_gmt":"2026-07-02T22:47:46","slug":"startup-sues-palo-alto-networks-koi-security-saying-an-ai-hallucinated-report-falsely-linked-it-to-chinese-espionage","status":"publish","type":"post","link":"https:\/\/www.threatshub.org\/blog\/startup-sues-palo-alto-networks-koi-security-saying-an-ai-hallucinated-report-falsely-linked-it-to-chinese-espionage\/","title":{"rendered":"Startup sues Palo Alto Networks’ Koi Security, saying an AI-hallucinated report falsely linked it to Chinese espionage"},"content":{"rendered":"
<\/div>\n

MeetingTV has sued Palo Alto Networks after its newly acquired Koi Security threat-intelligence biz published a blog that linked the video conferencing and webinar startup to a Chinese corporate espionage operation.<\/p>\n

The legal complaint filed against Koi Security, its researchers, and Palo Alto Networks alleges that Koi used an LLM to generate the threat report, the AI system hallucinated findings about MeetingTV, and the security shop then published those as facts in a December 30 blog. <\/p>\n

It accuses Koi of \u201creckless publication of an AI-driven cybersecurity report that falsely accused Plaintiff MeetingTV Inc. of criminal conduct including operating core infrastructure for a well-funded Chinese criminal organization running a large-scale malware and corporate espionage campaign,\u201d according to court documents<\/a> <\/span>[PDF]. <\/p>\n

\u201cThe false attributions were the direct product of Koi\u2019s unsupervised reliance on their proprietary \u2018Wings\u2019 analytical platform, which generated erroneous correlations between the Plaintiff\u2019s business and an alleged cybercriminal actor they called DarkSpectre,\u201d the lawsuit continues. <\/p>\n

A Palo Alto Networks spokesperson told The Register<\/span> that the company \u201cis aware of the lawsuit brought by MeetingTV Inc. regarding a threat research report published by Koi Security prior to the acquisition,\u201d but declined to answer our specific questions about MeetingTV\u2019s allegations and the Koi blog.  <\/p>\n

\u201cWe believe Koi\u2019s cybersecurity research reflects its commitment to identifying and exposing threats to users and enterprises, and we expect that this dispute will be resolved through the appropriate legal process,\u201d the spokesperson said.   <\/p>\n

Koi\u2019s blog, which has since been silently edited<\/a> to remove references to MeetingTV\u2019s product called Zoomcorder, originally labeled<\/a> the meeting recording service as a \u201cpublic-facing front\u201d for a Chinese criminal operation and said it lent \u201ccredibility to the infrastructure while serving as a monetization channel\u201d – allegations MeetingTV disputes in its lawsuit. The blog also claimed the operation was behind a 2.2-million-user campaign stealing corporate meeting intelligence.<\/p>\n

As a result of the report, MeetingTV says, security companies and service providers around the globe blocked MeetingTV\u2019s domains and services, labeling it as malware and command-and-control infrastructure.<\/p>\n

The startup\u2019s founder and CEO, longtime entrepreneur Michael Robertson, told us the blocks are the only way he found out about the Koi report in the first place. According to Robertson, Koi did not reach out to MeetingTV prior to publishing its threat report.<\/p>\n

\u201cEven after publishing they never contacted us,\u201d he told The Register<\/span>. \u201cI was contacting the security companies one by one asking them to unlock us. Most never respond in any fashion, but one finally did respond and told us he was blocking us because of the Koi report and he gave us the url.\u201d<\/p>\n

\n
\n

MORE CONTEXT<\/h2>\n<\/p><\/div>\n<\/div>\n

Robertson says he\u2019s still struggling, as providers including Verizon and Palo Alto Networks, which completed its Koi acquisition<\/a> in April, continue to block his startup. \u201cIf people on the internet are blocked from reaching your company, then that’s a death sentence,\u201d he said. \u201cPlus all the LLMs now say we’re working with Chinese cyber criminals. How will that ever get removed?\u201d<\/p>\n

After the acquisition closed, Robertson emailed Palo Alto CEO Nikesh Arora directly and asked him to take action.<\/p>\n

\u201cNow your company owns Koi and is continuing to publish and rely on the false report,\u201d the email said. \u201cOur domain and Google subdomains are blocked and labeled as malware and command and control by your company and others around the world \u2026 Take down the false report which is defaming us and in its place put a full retraction. Remove our domains from your own blacklist and help get them removed from others who are blocking us because of the Koi report.\u201d<\/p>\n

A mysterious extension<\/h3>\n

The December blog linked Zoomcorder to the Zoom Stealer campaign, which it attributed to the Chinese threat actor DarkSpectre, via a browser extension identified as “Twitter X Video Downloader.” According to Robertson and the lawsuit, however, this extension doesn\u2019t exist \u2013 and Koi \u201crefused to supply information\u201d about the software when MeetingTV requested it.<\/p>\n

\u201cKoi\u2019s single-actor theory rested on a fabricated technical \u2018pivot\u2019 \u2013 a single piece of software they repeatedly identified as the \u2018Twitter X Video Downloader\u2019 extension,\u201d the lawsuit alleges. \u201cThis alleged extension was described as the critical bridge connecting the Zoom Stealer campaign (defined entirely by Plaintiff\u2019s infrastructure) to ShadyPanda, core DarkSpectre infrastructure.\u201d<\/p>\n

Robertson said he believes Koi used an LLM to generate the threat report, and it hallucinated findings about MeetingTV\u2019s Zoomcorder product that the security shop published as facts. <\/p>\n

\u201cThey admit to using AI for their analysis,\u201d Robertson said. \u201cMaybe a human made it all up? Maybe it was AI? What’s clear is that if the software doesn’t exist, then even the most rudimentary analysis is impossible to do, yet they labeled our urls, services, and software as criminals.\u201d<\/p>\n

The bigger picture in all of this, according to Robertson, is that we know AI systems<\/a> hallucinate<\/a>. Their findings should not be accepted as fact without any human review.<\/p>\n

\u201cWe’re on the doorstep of an era where AI will be used to make critical life-altering decisions on people’s lives: Did you pay your taxes, what your credit rating should be, will you get admitted to the University, do you qualify for the home loan, should you be on the no-fly list, etc.,\u201d Robertson said. <\/p>\n

\u201cWill these be made without human oversight? Will people have due process \u2013 see the accusations against them, present their own evidence, have a neutral arbiter? None of that happened in our case,\u201d he continued. \u201cThey just declared us criminals and published it to the world.\u201d\u00ae<\/p>\n

READ MORE HERE<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

MeetingTV wants to see the evidence READ MORE HERE…<\/p>\n","protected":false},"author":2,"featured_media":61004,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"colormag_page_layout":"default_layout","footnotes":""},"categories":[63],"tags":[903],"class_list":["post-61003","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-the-register","tag-legal"],"yoast_head":"\nStartup sues Palo Alto Networks' Koi Security, saying an AI-hallucinated report falsely linked it to Chinese espionage 2026 | ThreatsHub Cybersecurity News<\/title>\n<meta name=\"description\" content=\"ThreatsHub Cybersecurity News | ThreatsHub.org | Cloud Security & Cyber Threats Analysis Hub. 100% Free OSINT Threat Intelligent and Cybersecurity News.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" 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