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!”
This is difficult. Before AI you could do convincing fake nude pictures of anybody using photoshop and a little skill. So by your logic Adobe executives should go to jail too. Fines are good as a warning, but put the rest of the punishment on the user, not the tool