AI Misuse Claims in FTX Litigation Roil Fight Over Settlement

June 8, 2026, 8:27 PM UTC

Lawyers in court battles over FTX’s collapse are accusing attorneys for one group of plaintiffs of filing a legal brief with AI-generated hallucinations.

David Boies, who represents the defunct crypto trading platform’s account holders, on June 5 asked a federal judge to sanction the lawyers for a rival group of plaintiffs. Boies, the founder of Boies Schiller Flexner, cited “significant citation defects” in the group’s bid for a carve-out from a recent settlement agreement.

The faulty opposition filing contains references to other cases that inaccurately described decisions to support the carve-out request, according to Boies. Lawyers at Sidley Austin, representing ...

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