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OpenAI Challenges Court Order to Preserve User Data in NYT Lawsuit

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In brief

  • OpenAI has publicly responded to a May judge order for it to retain all user chats, including deleted ones.
  • The ChatGPT maker says the move undermines privacy and isn’t relevant to the lawsuit.
  • The New York Times suit alleges OpenAI illegally used copyrighted content for training

OpenAI is contesting a federal court order requiring it to preserve all user data, including deleted chats, as part of a copyright lawsuit brought by The New York Times.

“We strongly believe this is an overreach by The New York Times. We’re continuing to appeal this order so we can keep putting your trust and privacy first,” OpenAI COO Brad Lightcap said in a statement.

The decision stems from a May 13 order to “preserve and segregate all output log data that would otherwise be deleted on a going forward basis until further order of the Court.”

The New York Times sued OpenAI and Microsoft in December 2023, alleging that both companies illegally used Times content to train large language models like ChatGPT and Bing Chat. 

The Times claims this infringes on its copyrights and threatens the business model of original journalism. It said last month that potential evidence of copyright infringement might be deleted as users clear their chat histories.

At the heart of the case is whether using copyrighted material to train generative AI models constitutes “fair use.” The Times alleges that OpenAI’s tools sometimes generate near-verbatim outputs from its articles and can bypass its paywall through AI-generated summaries.

Both sides have argued they are taking the moral high ground. The Times has said it is protecting journalism and the ability of the media to do its work and get paid for it. 

OpenAI CEO Sam Altman has accused the outlet of being “on the wrong side of history”, while the company has said The Times cherry-picked the data used in the suit.

As the generative AI industry expands, courts are becoming key battlegrounds in the fight over data, privacy, and intellectual property. 

The lawsuit is one of several high-profile copyright claims brought against OpenAI and other AI firms. In April, Ziff Davis, which owns media outlets such as PCMag and Mashable, sued OpenAI over allegations of using its content without consent.

This week, Reddit filed a suit against another AI company, Anthropic, alleging it scraped Reddit data without permission. Anthropic is also facing lawsuits from music publishers and authors.

Edited by Sebastian Sinclair

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WazirX restructuring rejected by Court as community cries ‘scam’
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WazirX restructuring rejected by Court as community cries ‘scam’

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The embattled crypto exchange WazirX has hit another bump in the road, with a recent decision from Singapore’s High Court dealing a blow to its ongoing recovery efforts. 

According to the latest announcement from Indian crypto exchange WazirX, the Singapore High Court has issued an order declining its proposed restructuring plan. The court’s decision marks a major setback for the exchange, which has struggled to regain its footing since suffering a devastating $230 million hack in July 2024. 

“The Honourable Singapore High Court issued an order declining to approve our proposed restructuring plan,” wrote the exchange, expressing its disappointment with the verdict.

Despite the ruling, WazirX assured creditors that it remains committed to facilitating distributions and is exploring additional legal options, including an appeal to the Court. The exchange added that assets remain safe, assuring its lengthy list of creditors that a resolution is in the works.

However, the assurances did little to quell creditors’ outrage as many flooded social media with accusations.

Community claps back with fresh WazirX ‘scam’ accusations

Several creditors have expressed frustration with WazirX’s latest update, pointing to the months-long delay since the originally promised distribution timeline of February 2025. Many argue that the exchange is using legal issues as an excuse to avoid paying back users. “This isn’t delay. It’s a scam wrapped in court drama,” said one frustrated Netti Mittal, echoing broader community sentiment. 

Others added that the restructuring bid was likely denied because the judge suspected questionable behavior from WazirX and its executives, including a lack of transparency and possible deceit.

If wazirx didn’t hide info from Singapore court, scheme would have been approved but they silently had a plan to fool Singapore court and got caught.

That’s why it was rejected if you want to blame someone then blame wazirx team.

— Aditya Singh (@CryptooAdy) June 4, 2025

Adding fuel to the fire is the exchange’s latest decision to move from Singapore to Panama under a new name, ‘Zensui,’ highlighted in recently shared legal documents. “Zettai has taken steps to incorporate a subsidiary, Zensui Corporation […] in the Republic of Panama, and has been preparing for the transfer of the operations of the Platform’s cryptocurrency-related services to Zensui,“ the documents read.

Several users have interpreted the move as a deliberate escape strategy, accusing WazirX of using it as a fraudulent tactic to avoid repaying creditors the funds allegedly ‘stolen.’ Many are now calling on Indian authorities to take legal action, including demands for the arrest of the exchange’s CEO Nischal Shetty.

Once a SCAMMER, always a SCAMMER 🤷🏻
This is how they fool 🇮🇳 Indian crypto users !!
From Zettai to Zensui
From Singapore 🇸🇬 to Panama 🇵🇦
Singapore banned unlicensed #Crypto companies. So #WazirX ran away 🫠
New name, new country, same drama, same scammer ! Arrest Nischal Shetty pic.twitter.com/C5C376OVrt

— Abhi (@Abhi_Tenet) June 5, 2025





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Supreme Court asked to Reject Coinbase User’s Crypto Case
Crypto Trends

Supreme Court asked to Reject Coinbase User’s Crypto Case

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The US government has urged the Supreme Court not to take up a Coinbase user’s challenge against the Internal Revenue Service’s (IRS) effort to obtain his crypto transaction records.

In a filing dated May 30, Solicitor General D. John Sauer argued that Coinbase user James Harper has no Fourth Amendment right to shield his financial records held by the exchange.

The government claimed that Harper “voluntarily” shared his data with Coinbase, and that the IRS followed proper legal procedures to obtain it through a judicially approved summons.

Harper’s case centers on a 2016 IRS investigation into widespread tax underreporting on cryptocurrency gains. At the time, the IRS discovered a sharp gap between the millions of Coinbase users trading Bitcoin (BTC) and the relatively few taxpayers who reported crypto gains.

In response, the agency obtained a so-called “John Doe” summons compelling Coinbase to turn over records on high-volume customers.

An excerpt of the filing. Source: Supreme Court

Related: Coinbase data breach 2025: What was stolen and what you need to know

Coinbase user sues IRS over crypto records search

Harper, who traded Bitcoin on Coinbase during the relevant years, later sued, claiming that the IRS’s actions amounted to an unconstitutional search of his personal records.

Lower courts disagreed, ruling that Coinbase’s records are business documents — not Harper’s private papers — and that the IRS acted lawfully.

In its brief, the government argued that Supreme Court precedent supports the IRS’s position. Citing past cases such as United States v. Miller, the government emphasized that individuals have no reasonable expectation of privacy in financial records held by third parties Coinbase.

The filing also pointed to Coinbase’s own privacy policy, which warned users that information could be shared with law enforcement.

“To the extent petitioner made those arguments below, the court of appeals correctly rejected them as both foreclosed by this Court’s precedent and meritless,” the government said.

The Supreme Court has not yet decided whether it will hear the case. A denial would leave in place the First Circuit’s ruling in favor of the IRS.

Related: Retired artist loses $2M in crypto to Coinbase impersonator

Coinbase suffers major data breach

On May 15, Coinbase disclosed a data breach in which attackers bribed customer support staff in India to access sensitive user information.

Stolen data included customer names, account balances, and transaction histories. Coinbase confirmed the breach impacted roughly 1% of its monthly transacting users. Among those affected was venture capitalist Roelof Botha, managing partner at Sequoia Capital.

Coinbase also faced a wave of lawsuits following the revelation. At least six legal complaints were filed on May 15 and 16, with plaintiffs accusing the exchange of failing to implement adequate security measures and mishandling its response to the breach.

Magazine: Coinbase hack shows the law probably won’t protect you: Here’s why



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Binance Lawsuit By Sec Voluntarily Dismissed In Court
Crypto Trends

Binance Lawsuit by SEC Voluntarily Dismissed in Court

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The U.S. Securities and Exchange Commission (SEC) has voluntarily dropped its lawsuit against Binance, the world’s biggest cryptocurrency exchange. This was confirmed by a court filing on Thursday in Washington, D.C.

The dismissal was filed jointly by lawyers for the SEC, Binance, and Binance’s founder, Changpeng Zhao.

Last year, the SEC had accused Binance and Zhao of inflating trading volumes, mixing customer funds, allowing U.S. customers to trade on Binance’s main platform despite restrictions, and misleading investors about how the exchange monitored the market. The SEC also said Binance allowed trading in tokens it considered unregistered securities.

The regulator called Binance and its U.S.-based affiliate, Binance.US, out for selling unregistered securities and described their handling of customer funds as a “web of deceit.”

Now, with the lawsuit dropped, the crypto world is waiting to see what this means for Binance and how it might affect future regulations for the industry.

No official reason has been given for the SEC’s decision to dismiss the case.

Also Read: Coinbase Finds More Trouble as It’s Hit with Another Lawsuit



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SEC Agrees to Drop Lawsuit Against Binance and Founder CZ: Court Filing

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In brief

  • The SEC filed to dismiss its 2023 lawsuit against Binance, its founder, and sister company.
  • The regulator alleged at the time that the exchange sold unregistered securities, among other violations.
  • Under President Trump, the SEC has scrapped a number of high-profile crypto lawsuits.

The Securities and Exchange Commission on Thursday filed to have its long-running lawsuit against crypto exchange Binance and its founder dropped, a court filing shows.

Wall Street’s biggest regulator in 2023 alleged that Binance, its boss Changpeng “CZ” Zhao, and U.S.-based sister company Binance.US offered the sale of unregistered securities, failed to block U.S. users from accessing the main exchange, and commingled customer funds through a “web of deceit.”

The SEC’s chair at the time, Gary Gensler, alleged in the original lawsuit that Binance “attempted to evade U.S. securities laws by announcing sham controls that they disregarded behind the scenes” in a bid to keep big American investors using the platform.



Binance’s CCO at the time was alleged in the lawsuit to have told another Binance compliance officer in December 2018: “We are operating as a fking [sic] unlicensed securities exchange in the USA bro.”

But the lawsuit is the latest under the aggressively pro-crypto Trump administration to be scrapped.

Under the President Biden-appointed Gensler, the regulator went hard after the crypto industry from 2021-2024. The SEC’s main gripe with crypto companies was that they were allegedly selling unregistered securities in the form of digital tokens.

During Gensler’s reign, the SEC sued Binance, Kraken, Coinbase, and many other companies in the space.

But since President Trump returned to office, the regulator has adopted a softer approach to the industry, dropping a number of high-profile lawsuits and probes.

President Trump campaigned on a ticket to help the crypto industry and received backing from tech and digital asset business bigwigs—including companies sued by the SEC.

“We are pleased that the SEC fully dismissed its charges against Binance.US, confirming what we have always known—that the company did not violate U.S. securities laws,” Binance.US said in a statement shared with Decrypt. “Today’s news is a major milestone for our company, as putting this matter to rest allows us to focus entirely on growing our business and work on restoring our relationships that were impacted by the SEC.”

Editor’s note: This story was updated after publication with additional details and comment from Binance.US.

Edited by Andrew Hayward

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Bitcoin Wobbles as US Trade Court Strikes Down Trump’s Tariffs

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In brief

  • A federal court has knocked back Trump’s sweeping April tariffs, ruling them unconstitutional.
  • U.S. equity futures surged following the decision, while Bitcoin experienced a minor drawdown as traders rotate capital.
  • The court gave the government 10 days to implement the injunction; Trump’s legal team has already appealed the ruling.

Bitcoin retreated slightly on Wednesday amid a U.S. court decision that invalidated President Donald Trump’s sweeping tariff regime, delivering a blow to his second-term trade doctrine and calming equity markets.

A three-judge panel at the U.S. Court of International Trade ruled that Trump exceeded his presidential authority when he imposed blanket tariffs on most U.S. trading partners in early April, citing a national emergency under the decades-old International Emergency Economic Powers Act (IEEPA).

IEEPA, enacted in 1977, grants the U.S. president authority to regulate international commerce during declared national emergencies arising from external threats.

“We instead read IEEPA’s provisions to impose meaningful limits on any such authority it confers,” the panel wrote. “Any interpretation that delegates unlimited tariff authority is unconstitutional.”

The ruling invalidates 10% baseline tariffs, a 25% levy on Canada and Mexico, and a 20% rate on Chinese imports. 

It comes in response to two lawsuits, one filed by small businesses, including wine importer V.O.S. Selections, and another by a coalition of states led by Oregon and Arizona.

Following the ruling, Dow futures climbed 520 points, or nearly 1.2%, while S&P 500 and Nasdaq futures gained 1.7% and nearly 2%, respectively, according to MarketWatch, as markets welcomed the ruling.

Bitcoin, which reached a new all-time high of $111,814 last week, fell 1% on the day to $110,800, according to CoinGecko data.

Kadan Stadelmann, CTO of Komodo Platform, told Decrypt the decision “signaled a return to law and order,” saying that investors were now more comfortable reallocating capital to equities.

While Bitcoin’s short-term decline reflects that shift, the executive said he doesn’t expect the trend to reverse the broader bull market.

 “It’s also perfectly reasonable to see Bitcoin’s price action after the court decision as little more than a correction before it continues making the gains it has been making for several years,” he added.

The panel also rejected the administration’s justification for country-specific tariffs on China, Canada, and Mexico, saying they “fail because they do not deal with the threats set forth in those orders.” 

Trump had invoked IEEPA to levy tariffs of up to 125% on hundreds of imported goods, claiming an economic emergency tied to drug trafficking and foreign coercion.

The court ordered the U.S. government to issue the necessary administrative actions “within 10 calendar days” to carry out the permanent injunction.

Trump’s legal team has already filed a notice of appeal to the U.S. Court of Appeals for the Federal Circuit, according to a Reuters report.

Edited by Sebastian Sinclair

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Court mutes Telegram founder before Oslo Freedom Forum
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Court mutes Telegram founder before Oslo Freedom Forum

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A French judicial authority has rejected Telegram founder Pavel Durov’s application to travel to Norway for participation in the Oslo Freedom Forum scheduled for Tuesday, May 27.

The decision prevents Durov from delivering a planned address on digital surveillance, free expression, and online rights at the prominent human rights conference.

The Human Rights Foundation, which organizes the annual activist gathering, expressed disappointment over the court’s ruling that restricts Durov’s movement despite his invitation to speak before an international audience of freedom advocates.

Pavel Durov faces ongoing legal constraints

Thor Halvorssen, founder and CEO of the Human Rights Foundation, criticized the judicial decision. “Technologies like Telegram are basic tools for those resisting tyranny. This is more than a disappointment for our community; it is a setback for freedom,” Halvorssen stated.

Pavel Durov, who created Telegram, has been subject to French legal proceedings since August 2024. Authorities arrested him over allegations related to criminal activities conducted through his platform. However, prosecutors have not charged him with direct wrongdoing.

The case centers on questions of platform liability for user-generated content and activities. French officials argue that Durov bears legal responsibility for how others use Telegram’s services. He remains free on bail while the matter proceeds through the judicial system.

The court’s refusal to permit travel reverses previous decisions. French authorities had previously authorized Durov to leave the country for international engagements.

This unexpected restriction has affected discussions between Durov and human rights defenders from various authoritarian states about improving Telegram’s capabilities for resistance movements.

Durov has maintained residence outside Russia since 2014, when he declined to provide the Federal Security Service with user information regarding Ukrainian protesters. His exit from Russia established him as a prominent voice against digital surveillance and governmental interference in private communications.



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UK Appeals Court Dismisses Bitcoin SV Investors’ $13.3B Damages Bid Against Binance

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In brief

  • The UK appeals court has dismissed the bulk of a $13.3B class action against Binance, rejecting claims that BSV could have reached Bitcoin-level value if not delisted in 2019.
  • The court ruled damages were speculative and unsupported, saying that investors had a duty to mitigate losses by selling in an open market.
  • The scope of the lawsuit was significantly narrowed, though smaller claims from investors who lost access or sold at a loss may still proceed.

The UK Court of Appeal has dismissed the majority of a $13.3 billion (£10 billion) class action against crypto exchange Binance, dealing a major blow to Bitcoin SV (BSV) investors who said the company’s 2019 delisting of the token crushed its growth potential.

The court rejected the investors’ “foregone growth effect” theory, which suggested BSV would have reached price levels similar to Bitcoin had it not been removed from major trading platforms, in a judgment handed down on Wednesday.

The claim sought 352 times the original value of BSV held by “sub-class B” investors, but the court deemed it speculative and ruled it could not proceed.

“I asked Mr. John Wardell KC… how the representative could possibly claim hundreds of times more than the value of the assets that the defendants had allegedly damaged,” wrote Master of the Rolls Sir Geoffrey Vos in the ruling. “He was unable to give any answer.”

Wardell, a senior barrister at Wilberforce Chambers, represents BSV Claims Limited, the entity bringing the collective action on behalf of over 240,000 UK-based investors.

Last week, his team asked the court to revive the dismissed claims, including a “loss of chance” theory.

The Court found that the claimants’ own expert had relied on comparators like Bitcoin and Bitcoin Cash to estimate damages, undermining the argument that BSV was a unique or irreplaceable asset.

It also dismissed the “loss of chance” claim, ruling it was not legally applicable.

The judges explained the damages sought did not involve missed opportunities tied to third-party decisions or realistic probabilities.

Instead, the claim turned on whether BSV would have developed into a top-tier cryptocurrency, a question the Court said could be resolved on the balance of probabilities and not through speculative or fallback theories.

In doing so, the Court affirmed the Competition Appeal Tribunal’s July 2024 decision, which applied the “market mitigation rule,” a legal principle requiring claimants to take reasonable steps to reduce their losses when a functioning market is available.

Decrypt has reached out to Binance for comment and will update this story should the exchange respond.

Lawsuit narrowed

The judgment narrows the lawsuit, which also targets Kraken, ShapeShift, and Bittylicious over their 2019 delistings of the BSV token.

The BSV token, the full name of which is Bitcoin Satoshi Vision, was created by Craig Wright, whose claim to be Bitcoin creator Satoshi Nakamoto was dismissed by a UK court earlier this year.

While the Appeal Court dismissed the largest part of the lawsuit against Binance, some smaller claims could still move forward.

These include claims from investors who lost access to their BSV after it was removed from exchanges, or who sold it at a loss soon after the delisting.

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Australian regulator asks High Court to allow appeal in Block Earner case
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Australian regulator asks High Court to allow appeal in Block Earner case

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Australia’s financial regulator will seek the High Court’s permission to appeal a lower court’s ruling favoring fintech firm Block Earner, which found the company’s crypto-linked fixed-yield earning service is not a financial product.

The Australian Securities and Investment Commission said on May 21 that it wants to ask the High Court of Australia to clarify what the definition of a financial product is and clarify the circumstances when an interest-earning product and the conversion of assets from one form to another are regulated.

“The definition of financial product was drafted in a broad and technology-neutral way, and ASIC believes it is in the public interest to clarify this,” the watchdog said.

“This clarification is important as it applies to all financial products and services whether they involve crypto-assets or not.”

On April 22, Federal Court Justices David O’Callaghan, Wendy Abraham and Catherine Button found that Block Earner’s crypto-linked fixed-yield earning product is not a financial product, a managed investment scheme or a derivative under the Corporations Act.

ASIC said the court will consider its application. Special leave is required in an appeal to the High Court, and it’s only granted in cases where it would answer significant legal questions or matters of public interest.

A Block Earner spokesperson told Cointelegraph the matter has now escalated to a “broader legal question” around the definition of a financial product, which extends “well beyond Block Earner, and the crypto sector.” 

“We believe the Full Federal Court’s April ruling was a strong and well-reasoned decision that upheld the integrity of our operations,” the spokesperson said. “We remain confident in the soundness of that judgment and will respond to ASIC’s application through the appropriate legal channels.” 

Legal saga ongoing since 2022

ASIC first launched legal proceedings against Block Earner in November 2022, arguing the company needed a financial services license to offer its yield product, which was available from March 17, 2022, until the company shut it down on Nov. 16, 2022.

Related: Australia outlines crypto regulation plan, promises action on debanking

ASIC was arguing Block Earner needed a financial services license to offer its crypto-linked fixed-yield earning product. Source: ASIC

In February 2024, an Australian court initially ruled the fintech firm would need a financial services license to operate its crypto yield-bearing products. 

Another June 2024 ruling in Australia’s Federal Court released Block Earner from any financial penalties because it had “acted honestly” and pursued its legal opinions before launching the products, which ASIC appealed.

Block Earner appealed the Federal Court’s decision that it needed a financial services license on July 9, 2024. 

Magazine: SEC’s U-turn on crypto leaves key questions unanswered



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Ubisoft CEO to be summoned to court in Ubisoft harassment trial
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Ubisoft CEO to be summoned to court in Ubisoft harassment trial

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Ubisoft CEO Yves Guillemot and human resources director Marie Derain will be summoned to court to testify in the trial of three former Ubisoft executives accused of sexist and racist behaviors.

As reported by the union Solidaires Informatique via VGC, Guillemot and Derain have been called in the trial of Serge Hascoet, Tommy Francois, and Guillaume Patrux, all of whom have been accused of sexual harassment. After delays pertaining to errors by the prosecution, the trial is set to begin on June 2, 2025.

Former chief creative officer Serge Hascoët and ex-VP of editorial and creative services Tommy François both left the publisher in summer 2020, following allegations of widespread abuse, harassment, and discrimination within Ubisoft, including claims against the two executives. In all, five former executives from Ubisoft were arrested by French police in 2023 following a year-long investigation into sexual assault and harassment within the company.

“Beyond the personal responsibility of these three executives, this trial will highlight Ubisoft’s responsibility in setting up a system aimed at keeping harassers in place while silencing their victims,” the union said (as translated by machine).

“As Mr. Beckers indicated during the March hearing, ‘this case is broader and involves many more people, both on the side of the victims and the defendants.’ It is not a question of a few individual actions, but of a well-oiled mechanism of insularity, work organization, and management that allowed this violence to continue within the company for years. One of the defendants’ lawyers himself said: ‘Ubisoft is the ghost of the case.'”

The statement said Guillemot and Derain had been summoned to highlight the “systemic nature of harassment” at Ubisoft.

Last week, Ubisoft released its financial results for the full 2024-25 fiscal year, reporting a “solid balance sheet” and “very strong praise” for Assassin’s Creed Shadows – which delivered the second-highest Day One sales in franchise history after Valhalla – despite hefty drops in revenue, net bookings, digital net bookings, and back-catalog net bookings across the year.



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