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!”
Photoshopped nude pictures of celebrities (and people the photoshopper knew personally) have been around for at least 30 years at this point. This is not a new issue as far as the legal situation is concerned, just the ease of doing it changed a bit.