Covert Data Collection and Telemetry Evasion (critical) ByteDance's Trae AI-powered IDE was found to be collecting user data (including code/input) and sending it to Chinese company servers. Technical analysis confirmed this 'extensive network activity' continued even when the user had explicitly disabled telemetry/tracking settings, indicating intentional evasion of user privacy controls.. Aggressive Intellectual Property (IP) License Grab in Terms of Service (high) The Terms of Service (TOS) grant Trae (SPRING Parties) an 'unconditional, irrevocable, non-exclusive, royalty-free, sublicensable, transferable, perpetual and worldwide license, to reproduce, use, and modify Your Content' for the improvement of services and 'respective business operations.' This was flagged by developers on GitHub as 'scary and horrendous' and unsuitable for corporate or business projects, as it implies the company can use proprietary code for its own benefit.. Poor Trust Score and Scam Warnings (medium) Trae.ai received a 'Poor Trust Score: 25%' from Scamdoc.com. Additionally, the site is being evaluated by Scam Detector regarding whether it is 'legit or a scam.' One user review noted that after building an app, the platform started 'aggressively limiting its features,' suggesting bait-and-switch tactics.. Misleading Marketing Claims and Execution Issues (medium) Customer reviews indicate that Trae's execution is 'undermined by misleading marketing claims' and 'platform compatibility issues.' This suggests a gap between the advertised features (such as 'unlimited free access to GPT-4o and Claude-3.5-Sonnet') and the actual user experience.