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The Federal Trade Commission has opened an investigation into OpenAI, the artificial intelligence start-up that makes ChatGPT, over whether the chatbot has harmed consumers through its collection of data and its publication of false information on individuals, the New York Times reported. In a 20-page letter sent to the San Francisco company this week, the agency said it was also looking into OpenAI’s security practices. The FTC asked OpenAI dozens of questions in its letter, including how the start-up trains its A.I. models and treats personal data, and said the company should provide the agency with documents and details. The FTC is examining whether OpenAI “engaged in unfair or deceptive privacy or data security practices or engaged in unfair or deceptive practices relating to risks of harm to consumers,” the letter said.

FTX Chief Executive John J. Ray III released a report that alleged an unnamed senior lawyer assisted the crypto exchange’s founder, Sam Bankman-Fried, in misusing customer deposits, the Wall Street Journal reported. Based on the actions that the report alleges, the unnamed lawyer in the document appears to be FTX’s former chief regulatory officer, Daniel Friedberg, people familiar with the matter said. Friedberg has been cooperating with the investigation and didn’t know about the misuse of FTX customer funds, said one of the people, who is close to Friedberg. The report alleged that the lawyer and Bankman-Fried lied to banks and auditors, executed false documents, and moved between jurisdictions to avoid detection of wrongdoing. The exchange owed customers $8.7 billion at the time of its collapse, the report said.

McKinsey & Co. is beefing up its ethics department after a series of high-profile controversies, including helping Purdue Pharma LP “turbocharge” opioid sales, Bloomberg News reported. The management consulting giant is hiring for a newly created position with its global “ethics allegations management team.” The “specialist” will be responsible for “intake and triage of matters” that could present a risk to the firm. McKinsey is also looking to replace its ethics director, a position that helps “ensure we uphold a distinctive culture of integrity and ethical behavior across our firm,” according to the job description, with a salary that ranges from US$235,000 to $314,000. “We are continually improving these processes and capabilities, which includes these ethics roles,” said Neil Grace, a McKinsey spokesperson. The company has more than more than quintupled internal risk, legal, ethics and compliance staff over the last eight years, he said. A lack of oversight at McKinsey has previously resulted in some well-publicized unsavory entanglements. The consulting firm has paid out $641 million to resolve ongoing lawsuits over its opioid work. Its South African branch has been ensnared in a corruption scandal and the company received sharp criticism for moving too slowly to cut ties with Russia after its invasion of Ukraine.