Complete Shutdown of China Operations Due to Geopolitical Risk (critical) In July 2025, the parent company (Butterfly Effect/Monica) shut down its entire China team and scrubbed all content from Chinese social media platforms (Weibo and RedNote). The stated reason for this drastic operational retreat was explicitly 'to reduce geopolitical risks.'. Allegations of Product Misrepresentation and Deceptive Marketing (high) Reports from March 2025 alleged that Manus AI used 'aggressive marketing, misleading claims, and financial manipulation' and that the product was 'essentially a Claude wrapper—built on Anthropic’s Claude Sonnet 3.7 model' rather than a breakthrough AGI agent, leading to a 'collapse after hype frenzy.'. Official Social Media Account Suspended Amid Cryptocurrency Scam Allegations (medium) Manus AI's official X (Twitter) account was suspended around March 8, 2025, due to external cryptocurrency scammers exploiting the company's name. This incident highlights poor brand security and vulnerability to fraud during its initial launch phase.. Conflicting Corporate Headquarters and Jurisdiction (medium) The company's legal entity, Butterfly Effect Pte. Ltd., is headquartered in Singapore, yet other sources list the company as 'based in China' and the operational headquarters as Beijing. This conflicting jurisdiction creates ambiguity, particularly concerning data privacy and cross-border compliance for a company operating in a sensitive AI sector.