Block & Order Weekly Docket (February 15, 2026)
By: Moish Peltz
This week I had the pleasant/unnerving surprise of going viral on X, a first for me at this scale. Wednesday afternoon, I read a Law360 article about Judge Rakoff’s ruling on AI privilege waiver and thought it was worth sharing, and posted it to LinkedIn by 5:30pm. Later on, I remembered as an afterthought to crosspost it to X, which I did just before 10pm. It felt important but not extraordinary. And then I went to bed.
By morning, my phone was on fire. Hundreds of likes and retweets. And then by noon Chamath quote-tweeted me, taking the tweet over 1 million impressions and kicking off a mainstream tech angle: “How many white-collar workers are uploading confidential decks into public LLMs right now, just trying to get their jobs done?”
Why do I think this happened? It wasn’t just the ruling (which wasn’t even the first of its kind). It was a sense of panic that comes from realizing you are not invincible. People realizing their prompts have consequences. I hope that this will result in people migrating towards more responsible and secure use of AI. But as of now, 2.3 million views and counting.
On to the update!
AI IN COURTS & LEGAL PRACTICE
- AI Docs Sent By Exec To Attys Not Privileged, Judge Says. A Manhattan federal judge ruled that AI-generated documents prepared by a defendant accused of $150M fraud lack attorney-client privilege or work-product protection, because they were created by the defendant using a non-confidential AI tool, not by attorneys. The judge noted that using an AI platform with no privacy guarantee cannot shield communications, though raised concerns about the propriety of using such materials at trial. [Law360 Pulse]
- Credit to Jack Newsham for his Business Insider article on the issue, where he identified an earlier case with a similar holding. [Business Insider]
- OpenAI Can Keep Atty Comms Secret After All, Judge Says. A federal judge reversed an earlier order and allowed OpenAI to maintain attorney-client privilege over internal communications regarding deleted training datasets, finding the original decision “clearly erroneous or contrary to law.” This protects OpenAI’s legal strategy in copyright infringement cases brought by authors. [Law360]
- Judges On AI: Practical Use Cases In Chambers. State and federal judges are exploring legitimate applications for AI in judicial work, from case management to legal research. The Expert Analysis series highlights how courts can leverage AI tools responsibly within their chambers, though judges emphasize the importance of verification and oversight to prevent errors and ensure public trust. [Law360 – Legal Industry]
- District Attorney Sanctioned Over Secret AI Use In Court Filings. A Wisconsin District Attorney was sanctioned by Judge David Hughes after using ChatGPT in court filings without disclosure, resulting in “AI hallucinations” that cited non-existent case law. While the judge permits AI use, prosecutors must now disclose the tool, explain how it was used, and cite actual authorities—basic verification standards that Solis failed to meet, leading to case dismissal. [Above the Law]
- Bogus Crypto Hotshot Duped Court with AI-Generated Transaction Records. A South Korean man fooled prosecutors and judges with ChatGPT-generated fake documents—including cryptocurrency holdings records, a fake medical exam certificate, and a bank statement showing $630,000—when his real account balance was just $0.016. The case exposed critical gaps in South Korea’s court document verification procedures and prompted calls for systematic reforms to detect AI-generated forgeries. [DL News]
PROPOSED AI LEGISLATION
CLEAR Act Introduced (Feb 2026): Congressional Action on AI Training Transparency. Senators Adam Schiff and Curtis introduced the CLEAR (Comprehensive License Enforcement of AI and Research) Act, requiring generative AI developers to:
- Notify the U.S. Copyright Office 30 days before commercial release with summaries and complete URLs of all copyrighted works used in training datasets
- Submit detailed documentation of training data sources
- Create a public database of AI training materials (enabling rights holders to audit usage)
- Face penalties of $5,000 per copyrighted work for private lawsuits plus injunctions and attorney fees for non-compliance
The CLEAR Act represents direct congressional intervention to create transparency and enforcement mechanisms for copyright holders regarding AI model training practices.
TRAIN Act Introduced (H.R. 7209, Jan 22, 2026): Copyright Owner Subpoena Power. Representatives Dean and Moran introduced the TRAIN (Transparency and Rights in AI Networks) Act (H.R. 7209), granting copyright owners powerful enforcement tools:
- Subpoena power to demand proof that their work was used in AI training (original or fine-tuned models)
- Limited to good-faith requests for rights protection and infringement investigation
- Direct accountability mechanism for AI developers to disclose training data
This legislation shifts leverage toward copyright holders, enabling them to investigate AI training practices without waiting for litigation discovery.
HIGH-PROFILE CRYPTO FRAUD CONVICTIONS
- Ex-SafeMoon Chief Sentenced to More Than 8 Years Over $9M Investor Fraud. Former SafeMoon CEO Braden Karony was sentenced to 100 months in federal prison after being convicted of conspiracy to commit securities fraud, wire fraud, and money laundering for stealing $9 million from the platform’s liquidity pool in 2021. He used stolen proceeds to purchase a $2.2 million Utah home, luxury vehicles, and custom trucks; the court also ordered forfeiture of approximately $7.5 million. [Cointelegraph]
- Fugitive Foreigner Sentenced to 20 Years for $73 Million Crypto Scam. A federal judge in California sentenced Daren Li in absentia to 20 years in prison for his role in a $73 million international cryptocurrency investment scam operated from Cambodia-based compounds using social engineering, dating apps, and fake tech support schemes. Li fled while on electronic monitoring and remains a fugitive; the Justice Department is working with global law enforcement to apprehend him. [CoinDesk]
CRYPTO REGULATION & SECURITY
- New York Is Considering Two Bills to Rein In the AI Industry. New York’s legislature is advancing two bills: the NY FAIR News Act, requiring AI-generated news content to carry disclaimers and pass human editorial review with source confidentiality safeguards, and S9144, imposing a three-year moratorium on new data center construction permits due to soaring electricity rates driven by AI infrastructure demands. National Grid reports that large-load connection requests have tripled in one year, with 10+ gigawatts of new demand expected over five years. [The Verge]
- Polymarket Sues Massachusetts, Claims States Can’t Regulate Prediction Markets. Polymarket filed a federal lawsuit against Massachusetts arguing that Congress granted the Commodity Futures Trading Commission (CFTC) exclusive federal authority over event contracts, preventing states from independently banning prediction markets. The suit challenges Massachusetts’ enforcement actions and follows similar state-level restrictions in Nevada and other jurisdictions seeking to protect their sports betting regulatory frameworks. The move comes after Massachusetts courts granted a preliminary injunction against competitor Kalshi for offering sports-related contracts. [Cointelegraph]
- Why Wrench Attacks Continue to Rock Crypto Industry Just Two Months Into New Year. Already 11 violent “wrench attacks” targeting crypto investors have been reported in 2026—including home invasions, kidnappings, and extortion in France, England, and the Philippines. The spike correlates with increased crypto adoption, identity leaks from tax reporting firms and exchanges (including the Waltio hack exposing 50,000 French taxpayers), and criminals’ shift from technical attacks to direct physical threats against individuals holding digital assets. [DL News]
- EU Lawmakers Back Digital Euro as Bloc Races to Bolster Monetary Sovereignty. The European Parliament voted for the first time to support a digital euro with both online and offline functionality, responding to rapid growth in U.S. dollar-backed stablecoins and concerns about payment digitalization controlled by non-EU actors. The European Central Bank would directly control the digital currency, and ECB officials believe it will counter stablecoin adoption while preserving privacy protections equivalent to physical cash. [DL News]
- Vitalik Buterin Pushes Back on the ‘Race to AGI,’ Outlines Ethereum-Led AI Path. Ethereum co-founder Vitalik Buterin argued against a “race to AGI” framing of AI development, calling instead for privacy-preserving, user-controlled AI systems where Ethereum serves as a neutral coordination layer for AI payments, deposits, and dispute resolution. His vision emphasizes local AI execution on personal devices, privacy-protecting payment methods, and transparent verification over centralized, speed-at-any-cost AI development that risks uncontrollable systems. [@VitalikButerin on X]
- Ethereum Foundation Co-Director Resigns to Focus on AI. Tomasz Stańczak, co-director of the Ethereum Foundation, announced his resignation effective end of month to pursue AI and “agentic systems” development as a hands-on builder. His departure follows his successful overhaul of the Foundation’s operations over the past year, streamlining decision-making and accelerating Ethereum upgrades; Bastian Aue will replace him as co-director alongside Hsiao-Wei Wang. [DL News]
If this week proved anything — 2.3 million impressions and counting — it’s that the conversation around AI and privilege isn’t just a legal niche anymore; it’s mainstream, and the stakes are only getting higher. Until next week, think before you prompt!
Questions? Insights? Your feedback shapes the docket. Reply or reach out.
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Block & Order Weekly Docket | Week of February 8-15, 2026
For legal professionals navigating crypto, AI, and emerging technology law. The materials in this article are for informational purposes only and are not legal advice. Do not act upon this information without first seeking advice from an attorney licensed in your jurisdiction.
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