A federal judge has ruled that prosecutors can compel OpenAI to turn over ChatGPT account records belonging to Richard Kim, the former chief executive of cryptocurrency startup Zero Edge, as part of a fraud case alleging he diverted investor money into crypto trades and online gambling.

Prosecutors allege that Kim diverted about $3.8 million from a $4.3 million fundraising round for Zero Edge and that, following his arrest, he used ChatGPT to research his case, including his trial strategy. Court filings indicate that Kim may also have used the AI to generate numerous prompts related to misappropriating investor funds, cryptocurrency trading and gambling. Kim has pleaded not guilty to securities and wire fraud charges. 

US District…