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Imprudence in legal strategy has led to significant financial repercussions for Craig Wright, who has been ordered to pay £225,000 in legal costs following accusations of improper artificial intelligence use in court submissions.
Lord Justice Arnold ruled that Wright must remit £100,000 to the Crypto Open Patent Alliance (Copa) and £125,000 to Bitcoin developers within 14 days. The judge deemed these costs "appropriate" given the meritless nature of Wright's appeal.
Wright's legal troubles stem from allegations that he utilized AI to generate court documents containing fabricated case law and false statements about previous proceedings. This case potentially represents one of the first English civil court rulings addressing AI misuse in legal documentation.
The court expressed concern that AI-generated content risked misleading judicial proceedings.
The appeal rejection came after the High Court ruled in March 2024 that Wright was not Satoshi Nakamoto, Bitcoin's creator. The judge found Wright's submissions "wholly without merit," characterizing them as excessively voluminous and unnecessarily complex.
The court questioned Wright's motives, suggesting his litigation served a publicity campaign rather than legitimate legal purposes.
Financial implications extend beyond the immediate costs. An additional £6 million of Wright's assets have been frozen to prevent offshore transfers.
This measure was implemented due to "dissipation" risk, with Copa's total incurred costs estimated at approximately £6.7 million. The ruling constitutes part of a broader pattern of forgery on an industrial scale exhibited throughout Wright's various legal battles.
This ruling establishes potential precedent regarding AI misuse in legal proceedings. Judge Justice James Mellor, who found Wright in contempt of court, issued a stern warning to litigants about the risks associated with AI tools in document creation, emphasizing the importance of proper legal documentation.
The Bitcoin community has celebrated this outcome as a victory for open-source development. Copa hailed the decision as a "definitive win for the truth" that "forensically demolishes" Wright's claims.
Developers can now continue their work without fear of litigation, marking a watershed moment for Bitcoin's decentralized ecosystem.
