Anthropic has begun rolling back a hidden surveillance feature in Claude Code that checked whether users were located in China or using Chinese proxies, encoding the data invisibly in the system prompt.
An Anthropic employee described the feature as an experiment launched in March to prevent account abuse and protect against model distillation, but the covert data transmission without user knowledge sparked outrage after a Reddit user exposed it.
Since Claude Code has full filesystem and shell access, the feature could have enabled abuse including remote control or data exfiltration.
What happened
Anthropic's Claude Code tool was secretly checking since version 2.1.91 (released April 2, 2026) whether users were in China or connected to Chinese proxies, encoding this data invisibly in the system prompt using steganography. An Anthropic employee confirmed the feature was an experiment launched in March to prevent account abuse from unauthorized resellers and protect against distillation, and said the team has now merged a pull request to fully roll it back in tomorrow's release.
Why it matters
Claude Code has full filesystem and shell access, so covert transmission of system and proxy data without user knowledge could open the door to abuse including remote control and data exfiltration. The discovery triggered outrage on social media and raised questions about trust, particularly since Anthropic does not officially offer its models in China, though many Chinese developers access Claude through foreign phone numbers and credit cards.
What to watch
Anthropic said the rollback should be complete in tomorrow's release. The company has previously accused DeepSeek, Moonshot AI, MiniMax, and Alibaba of using Claude model outputs without permission to train their own language models, suggesting Anthropic's geographic controls were meant partly to protect against that.
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