Z.ai open-sources ZCode after secretly uploading users' code encrypted

Z.ai apologized for its ZCode AI assistant silently uploading user workspaces and released the tool's source code. Data was sent encrypted with keys only Z.ai held, and the commit history showing the evidence was scrubbed.

• ZCode uploaded user workspaces without consent
• Data was encrypted with keys only Z.ai controlled
• The company scrubbed commit history containing evidence
• Open-sourcing does not decrypt already-collected data