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{"aggregator_url":"https://decrypt.co/ {"aggregator_url":"https://decrypt.co/365115/top-law-firm-admits-to-ai-hallucinations-in-bankruptcy-filing-tied-to-alleged-scam-network","as_of":"2026-04-22T13:12:40.941923+00:00","canonical_url":"https://decrypt.co/365115/top-law-firm-admits-to-ai-hallucinations-in-bankruptcy-filing-tied-to-alleged-scam-network","enrichment":{"aggregator_url":"https://decrypt.co/365115/top-law-firm-admits-to-ai-hallucinations-in-bankruptcy-filing-tied-to-alleged-scam-network","article_chars":4425,"article_truncated":false,"blocked_reason":null,"candidate_id":"sc_33aeb20bfe8e2b67","canonical_host":"decrypt.co","canonical_is_aggregator":false,"canonical_url":"https://decrypt.co/365115/top-law-firm-admits-to-ai-hallucinations-in-bankruptcy-filing-tied-to-alleged-scam-network","content_type":"text/html; charset=utf-8","enriched_at":"2026-04-22T13:16:15.298331+00:00","extraction_method":"trafilatura","fetched_description":"Sullivan & Cromwell said internal safeguards were bypassed in the Prince Group case, resulting in fabricated and inaccurate legal citations.","fetched_title":"Top Law Firm Admits to AI \u2018Hallucinations\u2019 in Bankruptcy Filing Tied to Alleged Scam Network - Decrypt","final_url":"https://decrypt.co/365115/top-law-firm-admits-to-ai-hallucinations-in-bankruptcy-filing-tied-to-alleged-scam-network","html_truncated":true,"paywall_likely":false,"publisher_domain":"decrypt.co","publisher_resolution":"canonical_url","requested_url":"https://decrypt.co/365115/top-law-firm-admits-to-ai-hallucinations-in-bankruptcy-filing-tied-to-alleged-scam-network","source_event_id":"evt_26297a5743cf","source_quality":"high","status_code":200,"version":"signal_enrichment_v2"},"fp":"008777857b55e975","kind":"crypto_extremes","published_at":"2026-04-22T12:46:41+00:00","publisher_domain":"decrypt.co","signal_understanding":{"analysis_basis":"article","claim_confidence":0.78,"dates_mentioned":["April 9","earlier this year (Chen detained in Cambodia)","later repatriated to China (date not specified)"],"entities":[{"asset_class":"","name":"Sullivan & Cromwell","relevance":"high","symbol":"","type":"law_firm"},{"asset_class":"","name":"Andrew Dietderich","relevance":"high","symbol":"","type":"person"},{"asset_class":"","name":"Judge Martin Glenn","relevance":"medium","symbol":"","type":"person"},{"asset_class":"","name":"U.S. Bankruptcy Court for the Southern District of New York","relevance":"medium","symbol":"","type":"court"},{"asset_class":"","name":"Prince Group","relevance":"high","symbol":"","type":"company"},{"asset_class":"","name":"Chen Zhi","relevance":"high","symbol":"","type":"person"},{"asset_class":"","name":"Boies Schiller Flexner","relevance":"medium","symbol":"","type":"law_firm"},{"asset_class":"","name":"British Virgin Islands liquidators (court-appointed liquidators)","relevance":"medium","symbol":"","type":"entity"}],"event_type":"regulation","information_gaps":["The article does not identify which specific lawyers prepared the original motion.","The exact wording of the fabricated citations/authorities is not provided in the text excerpt.","The article does not specify the date of the letter to Judge Martin Glenn beyond it being a disclosure in the bankruptcy court context.","The article does not provide the full details of the April 9 motion\u2019s contents beyond general descriptions of misstatements and fabricated citations.","The article does not state the outcome of the court\u2019s response (e.g., whether the hearing was adjourned).","No cryptocurrency ticker/symbol is provided; the text only describes \u201cbillions of dollars in cryptocurrency\u201d without naming assets."],"key_facts":["Sullivan & Cromwell admitted to a U.S. bankruptcy court that a recent filing contained AI \u201challucinations.\u201d","The firm said the document included fabricated and inaccurate legal citations and distorted existing authorities.","The disclosure was made in a letter from Andrew Dietderich to Judge Martin Glenn.","The errors appeared in an April 9 motion; the firm said its rules on AI use were not followed during preparation.","The firm withdrew the original motion and filed a revised version.","The case involves court-appointed liquidators seeking to pursue claims tied to Prince Group and its owner, Chen Zhi.","The article states prosecutors allege Chen directed scam compounds targeting victims worldwide and seeking recovery of billions of dollars in cryptocurrency linked to the activity.","The article says Chen was detained earlier this year in Cambodia and later repatriated to China.","Through Chapter 15 proceedings, the liquidators are seeking recognition of their authority to act on behalf of creditors and alleged victims.","The article says Prince Group is incorporated in the British Virgin Islands and has been linked by U.S. authorities to large-scale fraud operations in Southeast Asia and sanctioned by the UK and U.S. governments.","According to a corrected submission, the April filing misstated case law in multiple places and included citations that did not support the propositions attributed to them, and some citations appeared to have no basis at all.","The article says defendants initially identified errors and argued that language attributed to the U.S. Bankruptcy Code could not be found and that authorities were mischaracterized or misidentified.","The article states defendants said at least 28 citations were erroneous, including quotations attributed to the court that do not exist.","Defendants argued the timing of the correction was prejudicial because the revised filing came after they had submitted objections, and asked the court to adjourn a scheduled hearing and hold a status conference.","Sullivan & Cromwell stated its policies require training before using generative AI tools and independent verification of all output, including emphasis on AI \u201challucinations\u201d and \u201ctrust nothing and verify everything.\u201d","The firm said a broader review found additional minor drafting issues in other filings attributed to human error rather than AI.","The article notes the incident adds to a growing list of AI-related missteps in legal practice and mentions other jurisdictions/cases as context (Australia, court sanctions/criticisms, privilege questions, and AI pilots), but these are described generally in the text."],"numeric_claims":[{"label":"April filing date","value":"April 9"},{"label":"Erroneous citations (defendants\u2019 claim)","value":"at least 28"},{"label":"Cryptocurrency recovery sought (described)","value":"billions of dollars"}],"primary_claim":"Sullivan & Cromwell told a U.S. bankruptcy court that an April 9 filing included AI \u201challucinations\u201d that produced fictitious authorities and distorted or unsupported citations, and the firm withdrew and refiled the motion.","relevance_score":0.78,"sentiment":"negative","source_quality":"high","summary":"Sullivan & Cromwell admitted that a bankruptcy-court filing in the Prince Group case contained AI-generated \u201challucinations,\u201d including fabricated and inaccurate legal citations. The firm withdrew the original April 9 motion and filed a revised version after errors were identified by defendants and the firm said its AI verification rules were not followed.","topics":["AI hallucinations in legal filings","bankruptcy proceedings","fabricated legal citations","Prince Group case","Chapter 15 recognition","sanctions and alleged fraud","court-ordered liquidators","legal ethics/policies on AI use"]},"source":"Decrypt RSS","source_domain":"decrypt.co","summary":"Sullivan & Cromwell said internal safeguards were bypassed in the Prince Group case, resulting in fabricated and inaccurate legal citations.","tickers":[],"title":"Top Law Firm Admits to AI \u2018Hallucinations\u2019 in Bankruptcy Filing Tied to Alleged Scam Network","url":"https://decrypt.co/365115/top-law-firm-admits-to-ai-hallucinations-in-bankruptcy-filing-tied-to-alleged-scam-network"}... |