Police investigation remains open. The photo of one of the minors included a fly; that is the logo of Clothoff, the application that is presumably being used to create the images, which promotes its services with the slogan: “Undress anybody with our free service!”
Fake nudes have been around since the days of Kazaa and eDonkey. It’s nothing new. The only thing hard regulation is going to do is to keep the public unaware of how AI can be used (and make them unable to defend themselves from those who use it for unsavoury purposes).
These outrages that keep getting spammed all over the Internet calling for regulation smell horribly of corporate astroturfing.