Thursday, June 25, 2026
newmoneyfront.com
Advertisement
  • News
  • Share Market
  • Commodoties
  • Forex
  • Crypto
No Result
View All Result
  • News
  • Share Market
  • Commodoties
  • Forex
  • Crypto
No Result
View All Result
newmoneyfront.com
No Result
View All Result
Home Crypto

Federal Judge Allows Search of ChatGPT Records in Crypto Fraud Case

For your consideration by For your consideration
June 25, 2026
in Crypto
0
Federal Judge Allows Search of ChatGPT Records in Crypto Fraud Case
74
SHARES
1.2k
VIEWS
Share on FacebookShare on Twitter

You might also like

Crypto critic Roubini joins tokenization boom with onchain ‘Technodollar’

Crypto’s second U.S. lobbying front — tax policy — sees industry push on mining, staking

Iran keeps Strait of Hormuz closed until Lebanon ceasefire, oil waivers

Courts are increasingly signaling that conversations with AI tools could constitute evidence in criminal cases.

Headshot of Nelson Aguilar
Headshot of Nelson Aguilar

With more than a decade of experience, Nelson covers Apple and Google and writes about iPhone and Android features, privacy and security settings, and more.

A federal judge has ruled that prosecutors can compel OpenAI to turn over ChatGPT account records belonging to Richard Kim, the former chief executive of cryptocurrency startup Zero Edge, as part of a fraud case alleging he diverted investor money into crypto trades and online gambling.

Prosecutors allege that Kim diverted about $3.8 million from a $4.3 million fundraising round for Zero Edge and that, following his arrest, he used ChatGPT to research his case, including his trial strategy. Court filings indicate that Kim may also have used the AI to generate numerous prompts related to misappropriating investor funds, cryptocurrency trading and gambling. Kim has pleaded not guilty to securities and wire fraud charges. 

AI Atlas

US District Judge Lorna Schofield on Monday rejected the defense’s attempt to shield the chatbot data, establishing that AI chat logs can be treated as third-party digital evidence subject to a search warrant. The warrant seeks Kim’s OpenAI records from October 2023 through May 2026, including prompts, responses and account information.

The case is a reminder that conversations with AI chatbots can become part of a legal record. As more people use tools like ChatGPT for research and personal advice, courts are beginning to treat AI chats like other digital records, such as your emails, texts and search history. That also means using a chatbot for legal research doesn’t automatically make the conversation private or protected. 

Can a chatbot be protected by attorney-client privilege? 

Kim’s lawyers tried to block a search warrant, arguing that the chatbot data contains privileged information and research related to the case. According to the defense, those digital records should be protected, as they would expose Kim’s internal thoughts, defense tactics and trial strategy. 

Prosecutors countered that for the attorney-client privilege to apply, a conversation must be confidential between a human and a licensed legal professional for the purpose of obtaining legal advice. An AI chatbot cannot be a lawyer.

Schofield’s ruling does not determine whether Kim’s ChatGPT records are protected by attorney-client privilege, but it does allow the warrant to proceed, meaning the defense cannot stop OpenAI from complying. Kim may still challenge specific records afterward.

The dispute adds to a growing legal question about whether conversations with tools like ChatGPT, Gemini or Claude can remain private when they are used for legal research.

This ruling aligns with a landmark decision from earlier this year in United States v. Heppner, in which another Manhattan judge found that a defendant’s exchanges with Anthropic’s Claude chatbot were not protected by attorney-client privilege or work-product protections.

In that case, US District Judge Jed Rakoff said that AI platforms are third-party data collectors, not legal counsel. He noted that the defendant used Claude without his attorneys’ direction and that the platform’s privacy terms weakened any claim that the chats were confidential. Rakoff said AI use directed by an attorney could be treated differently.

Future cases may draw sharper lines around when AI-assisted legal work can be protected, especially if a chatbot is used at an attorney’s direction. 

It’s not exactly a digital version of Miranda rights, but the warning here is similar: Anything you type can (and will) be used against you in a court of law.

(Disclosure: Ziff Davis, CNET’s parent company, filed a lawsuit against OpenAI in 2025, alleging it infringed Ziff Davis copyrights in training and operating its AI systems.)

Headshot of Nelson Aguilar

With more than a decade of experience, Nelson covers Apple and Google and writes about iPhone and Android features, privacy and security settings, and more. See full bio

Share30Tweet19
For your consideration

For your consideration

Recommended For You

Crypto critic Roubini joins tokenization boom with onchain ‘Technodollar’

by For your consideration
June 24, 2026
0
Crypto critic Roubini joins tokenization boom with onchain ‘Technodollar’

Crypto critic Roubini joins tokenization boom with onchain 'Technodollar'The economist known as "Dr. Doom" is supporting a tokenized security backed by a Nasdaq-listed ETF he oversees, designed to...

Read moreDetails

Crypto’s second U.S. lobbying front — tax policy — sees industry push on mining, staking

by For your consideration
June 23, 2026
0
Crypto’s second U.S. lobbying front — tax policy — sees industry push on mining, staking

The crypto sector's leading U.S. advocacy groups asked the U.S. House's tax committee to advance a bill to clarify treatment of assets from mining and staking.Representative Mike Carey,...

Read moreDetails

Iran keeps Strait of Hormuz closed until Lebanon ceasefire, oil waivers

by For your consideration
June 22, 2026
0
Iran keeps Strait of Hormuz closed until Lebanon ceasefire, oil waivers

Iran’s state-run Tasnim news agency has reported that the strategic Strait of Hormuz will remain closed until a ceasefire in Lebanon is firmly upheld and oil waivers are...

Read moreDetails

AI is making crypto security cheaper, faster and harder to ignore

by For your consideration
June 21, 2026
0
AI is making crypto security cheaper, faster and harder to ignore

As AI-powered security tools become cheaper, faster and more widely available, researchers said they could reshape what the crypto industry considers reasonable due diligence before deploying code, potentially...

Read moreDetails

RippleX Engineer Says the Market Stopped Talking Lawsuits and Started Talking XRP

by For your consideration
June 20, 2026
0
RippleX Engineer Says the Market Stopped Talking Lawsuits and Started Talking XRP

Ayo Akinyele, Head of Engineering at RippleX, says the crypto market has moved past the legal noise that once overshadowed XRP and is now paying attention to what...

Read moreDetails

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Related News

How to Conduct Financial Statement Analysis With an Example Guide

How to Conduct Financial Statement Analysis With an Example Guide

August 28, 2025
How to fix the broken visa system for high-skill workers

How to fix the broken visa system for high-skill workers

December 1, 2025
FP Trading Signs Up with Financial Commission for External Dispute Resolution

FP Trading Signs Up with Financial Commission for External Dispute Resolution

March 17, 2026

Browse by Category

  • Commodoties
  • Crypto
  • Finance News
  • Forex
  • Share Market
newmoneyfront.com

We bring you the best Premium WordPress Themes that perfect for news, magazine, personal blog, etc. Check our landing page for details.

CATEGORIES

  • Commodoties
  • Crypto
  • Finance News
  • Forex
  • Share Market

BROWSE BY TAG

asx AUSTRALIA Bitcoin china christians Cryptocurrencies donald trump E-Commerce Economy Fed Tapering freedom INVESTMENT jpy Market Stories money Obligation peace profit russia shares stock market stocks Strategy Tax Trading truth

Copyright © 2024 newmoneyfront.com! Design by Freelancing Solution. All Rights Reserved.

No Result
View All Result
  • News
  • Share Market
  • Commodoties
  • Forex
  • Crypto

Copyright © 2024 newmoneyfront.com! Design by Freelancing Solution. All Rights Reserved.

Are you sure want to unlock this post?
Unlock left : 0
Are you sure want to cancel subscription?