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Treasury threatens sanctions after White House claims Moonshot distilled Anthropic’s Fable

TechCrunch·July 22, 2026

The US Treasury has threatened sanctions in response to claims that Moonshot distilled Anthropic's Fable, escalating tensions. The White House has made allegations regarding the matter, prompting a strong reaction from the Treasury. The incident has also sparked a wider discussion in Washington about the growing presence of Chinese open models. This development has intensified a broader debate over the impact of foreign technologies on national security and the economy.

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