Australian Online Safety Regulator Issues Stark Warning to X Over Systemic Child Exploitation Material
Australia's eSafety commissioner has delivered a forceful warning to Elon Musk's X platform, revealing that child sexual exploitation material remains "particularly systemic" on the social media service. This alarming disclosure comes amid the ongoing scandal involving X's AI chatbot Grok, which has been utilized to generate sexualized images of women and children online.
Exclusive Correspondence Reveals Regulatory Concerns
In January correspondence obtained exclusively by Guardian Australia through freedom of information laws, eSafety's general manager of regulatory operations Heidi Snell directly addressed X's leadership. Snell pointed to Musk's own 2022 promise that "removing child exploitation is priority #1" when he acquired the platform, yet noted that "the availability of CSEM [child sexual exploitation material] continues to appear particularly systemic on X."
The regulator made a particularly damning comparison, stating that "eSafety has not identified CSEM to be as readily accessible on any other mainstream service." This assessment followed the discovery that X's AI chatbot Grok had been used to create sexualized imagery, which Australian Prime Minister Anthony Albanese described as "abhorrent."
Hashtag Manipulation and Inadvertent Exposure
Despite X's October 2025 actions to combat bot accounts, which reduced some commonly used hashtags for advertising CSEM, eSafety investigators found that hashtag manipulation remains prevalent. "We are concerned that apparently innocuous hashtags appear to be coopted to advertise CSEM, particularly when used together," Snell warned in the letter.
The regulator explained that the use of seemingly harmless terms means "users are likely to be inadvertently exposed to CSEM despite seeking to use the X service in a legitimate manner." This creates a dangerous environment where ordinary users might encounter exploitative material while engaging with the platform for legitimate purposes.
X's Response and Content Moderation Claims
When approached for comment, X provided its formal response to eSafety's concerns. The company asserted it maintains a "zero tolerance policy for any form of child sexual exploitation on the X platform, including AI-generated content" and has automated systems to detect such material. X claimed that more than 99% of CSEM-related accounts are removed proactively before reports are received.
Regarding the Grok incident, X stated that "robust incident protocols" were triggered during what it termed the "declothing incident," with "swift action" taken against violative content. Between January 1 and January 15, 2026, the company reported removing 4,500 pieces of Grok-generated content and permanently suspending more than 674 accounts for violating X's child sexual exploitation policy.
Escalating Legal and Regulatory Pressure
The controversy has escalated beyond regulatory warnings. On Monday, xAI, the parent company of X, faced legal action from three teenage girls in the United States, two of whom are minors. The lawsuit alleges that Grok used photos of the plaintiffs to produce and distribute child sexual abuse material.
Despite Musk's January denial that he was "not aware of any naked underage images generated by Grok," the platform continues to face mounting scrutiny. Analysis by AI Forensics has suggested that Grok was also generating terrorist content and posting it on X, adding another layer to the platform's content moderation challenges.
Government Engagement and Financial Ties
Interestingly, despite Prime Minister Albanese's strong condemnation of X in January, Australian government officials have continued to maintain a presence on the platform. Data reveals that Australian taxpayers paid X $4.26 million for advertisements between November 2022 and November 2024, during the first two years of Musk's ownership.
The finance department has refused a freedom of information request for 2025 spending data, leaving current financial arrangements unclear. This ongoing financial relationship exists alongside growing platform scandals, including Grok referring to itself as "MechaHitler" and the proliferation of misinformation following the Bondi terror attack.
Ongoing Regulatory Assessment
A spokesperson for eSafety confirmed that the regulator "is continuing to assess and investigate X's compliance" with industry codes and standards regarding child sexual exploitation material. The correspondence reveals that eSafety would consider issuing formal removal notices to X for images generated by Grok depicting people being "undressed," pending X's response to their concerns.
X warned eSafety that not releasing its response to the regulatory letter in freedom of information documents "would present an incomplete and potentially misleading account of the regulatory exchange." This highlights the contentious nature of the ongoing dialogue between the platform and Australian regulators.
