- Eliza Labs has filed a lawsuit against X Corp over account suspensions.
- The AI activity crackdown aims to reduce botnet proliferation.
- Potential for tighter regulations across social media platforms.
ElizaOS and its founder Shaw Walters faced suspension from X on June 11, 2025, amid platform-wide actions against AI-driven protocol violations.
The suspension reflects increasing scrutiny on AI activities that may affect platform integrity, though no financial repercussions or related cryptocurrencies were identified.
The suspension and community reactions
The suspension has prompted Eliza Labs to file a lawsuit against X Corp, alleging monopolistic behavior intended to stifle competition. The lack of direct affected cryptocurrencies indicates a focus on the AI sector rather than financial markets.
Community reactions include sentiments supporting tighter regulation of AI content on X. Some users expressed approval, with one noting that reducing AI activity on the platform could improve user experience. Kirsten Pomales, a commentator, noted,
Increased Scrutiny on AI: Potential Future Regulations
Did you know? Eliza Labs’ lawsuit against X Corp. follows a pattern of increased scrutiny over AI automation, echoing past interventions against similar activities on social platforms.
Bitcoin currently trades at $87,805.69, showing a modest 0.31% gain in the past 24 hours, according to CoinMarketCap. While its market cap stands at $1.75 trillion, the cryptocurrency has seen a 24.67% price decline over the last 90 days, as of December 30, 2025.
Bitcoin(BTC), daily chart, screenshot on CoinMarketCap at 11:46 UTC on December 30, 2025. Source: CoinMarketCapExperts from Coincu suggest that the crackdown on AI activities by platforms like X could herald tighter regulations across social media platforms, potentially impacting AI and technology sectors significantly. Adding to the broader conversation, a Bitrue Vietnam Twitter Announcement further indicated that tech sectors are bracing for regulatory changes.
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Source: https://coincu.com/news/elizaos-suspension-lawsuit-ai-botnets/
