December 2022 - cypherpunks - lists.cpunks.org

Proudhon proved right about unions?
by professor rat 14 Dec '22

14 Dec '22

" . . . to exhibit the genesis of the problems of production and distribution is to prepare the way for their solution.” (Système I: 89, 92) Proudhon’s discussion of the associations which would replace wage-labour (and so end labour as a commodity). In these members “straightway enjoy the rights and prerogatives of associates and even managers”, “have a deliberative voice in the council” and so are “a solution based upon equality – in other words, the organisation of labour, which involves the negation of political economy and the end of property.” Hence “the socialisation of capital and property” for “it is necessary that […] all appropriated wealth again become collective wealth, that the capital taken from society returns to society” for “there is supremacy and dependence” between the worker and the capitalist and “capital introduces into society an inevitable feudalism”. (Système II: 204; I: 272–8, 217, 88; II: 168) Unlike the utopian socialists, he rejected the idea of organising labour and instead argued that labour would organise itself. Proudhon proved right about unions? https://anarchistnews.org/content/unions-and-state Reposts not blue-collar police-unions as roadblocks

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Sam Bankman-Fried Quietly Bought an SEC-Registered Stock Trading Operation; There Are Big Questions as to What’s Happening with Customer Accounts
by Gunnar Larson 13 Dec '22

13 Dec '22

https://wallstreetonparade.com/2022/12/sam-bankman-fried-quietly-bought-an-… Yesterday, just hours before Sam Bankman-Fried was arrested <https://twitter.com/SDNYnews/status/1602451395910803457?ref_src=twsrc%5Egoo…> in the Bahamas at the request of Damian Williams, the U.S. Attorney for the Southern District of New York, *Wall Street On Parade* learned that Bankman-Fried had been allowed to purchase an SEC-registered retail brokerage firm in August of last year. The brokerage firm at that time was called RJL Capital Group and was based in Staten Island, New York. Bankman-Fried changed the firm’s name to FTX Capital Markets LLC and moved its headquarters to Broad Street in the financial district in lower Manhattan. According to Wall Street’s self-regulator, FINRA, FTX Capital Markets was licensed to conduct retail stock trading in 32 states <https://brokercheck.finra.org/firm/summary/158816>. FINRA further notes that the firm’s SEC registration is “pending withdrawal” as of December 5 and all 32 state licenses are listed as “Termination Requested.” It is not clear if the firm has requested the withdrawal of its licenses and registration or if a regulator has initiated the action. (The SEC filed a broad range of charges this morning against Sam Bankman-Fried <https://www.sec.gov/litigation/complaints/2022/comp-pr2022-219.pdf> but it makes no mention of his ownership of a retail brokerage firm. The U.S. Attorney’s office is expected to unseal its indictment against Bankman-Fried later this morning.) *Wall Street On Parade* reached out to FINRA to learn if the brokerage accounts are moving to another firm and how many customer accounts were held at FTX Capital Markets. We have not yet heard back. We also contacted the Securities Investor Protection Corporation (SIPC), the organization that in case of a brokerage firm failure protects securities in the account up to $500,000, including up to $250,000 protection for cash that is held in the account for the purpose of trading securities. SIPC lists FTX Capital Markets as a “Member Firm.” SIPC advised via email that they were looking into the matter and would get back to us. FTX Capital Markets is *not* listed as one of the more than 100 FTX group entities that filed for bankruptcy on November 11. The byzantine terms of its customer agreement <https://assets.website-files.com/625f3cf193eb0bdbf6469cba/62a64865d7b50c462…>, which spells out that neither cash nor securities will be held in the broker-dealer customer account but farmed out to other entities, raises further questions. In June of this year, the parent of FTX US, West Realm Shires, Inc., announced it had purchased Embed Financial Technologies <https://www.prnewswire.com/news-releases/ftx-us-acquires-clearing-firm-embe…> along with its subsidiary, Embed Clearing LLC. FTX Capital Markets indicates in its regulatory filings that it is Embed Clearing LLC that will provide its brokerage customers with “custody, execution and clearing services” for stock trades. Fortunately, SIPC also shows Embed Clearing as a member firm. But when it comes to cash held for brokerage customers of FTX Capital Markets, things get a lot more troubling. The firm’s customer agreement contains this language: “The MSB [Money Services Business] maintains Customer MSB Accounts at a bank which is a member of the Federal Deposit Insurance Corporation (FDIC). Customer holdings in their Customer MSB Accounts are insured up to $250,000 per depositor against the failure of the FDIC member bank. FDIC insurance does not protect against the failure of the MSB or malfeasance by any MSB employee. MSB and the bank at which Customer Accounts are held are not members of FINRA or SIPC and therefore your funds held in the Customer MSB Account are not SIPC protected.” Sam Bankman-Fried does not exactly have a good track record with handling customers’ cash. The SEC complaint against him that was released this morning contains this insightful paragraph: “Bankman-Fried thus gave Alameda [his hedge fund] carte blanche to use FTX customer assets for its own trading operations and for whatever other purposes Bankman-Fried saw fit. In essence, Bankman-Fried placed billions of dollars of FTX customer funds into Alameda. He then used Alameda as his personal piggy bank to buy luxury condominiums, support political campaigns, and make private investments, among other uses. None of this was disclosed to FTX equity investors or to the platform’s trading customers.” One of the questions we posed to federal regulators related to a press release from the brokerage firm on May 19 <https://www.prnewswire.com/news-releases/ftx-us-launches-ftx-stocks-offerin…> of this year. The press release indicated that FTX Capital Markets (now dubbed “FTX Stocks”) was going further down the rabbit hole of mixing crypto with stock trading. It stated: “The release of FTX Stocks marks the first time in industry history that retail brokerage accounts can be funded with fiat-backed stablecoins such as USDC via a partnership with the FTX US crypto exchange, in addition to the standard USD [U.S. dollar] deposit methods of wire transfers, ACH transfers, and credit card deposits.” It came as news to us – and apparently regulators as well – that an SEC registered broker-dealer was allowed to accept crypto as deposits to trade stocks. (Laws and rules are apparently so yesterday to Sam Bankman-Fried.) It’s also notable that Bankman-Fried picked a brokerage firm with a jaded history for acquisition. According to FINRA records, in 2016 RJL Capital Group was fined $75,000 and censured by FINRA. The regulator wrote: “The findings stated that the firm failed to identify and investigate red flags associated with a customer’s trading in penny stocks. Consequently, the firm did not report the customer’s liquidations as potentially suspicious. The findings also stated that the firm failed to specifically tailor its supervisory systems to address customer trading in secondary public offerings (SPOs), and failed to identify and investigate potential Rule 105 violations by its customers. The firm’s AML [Anti Money Laundering] system also failed to consider its customers’ trading in connection with SPOs [Secondary Public Offerings] and the associated risks of potential violations of Rule 105, and therefore failed to detect and report those suspicious activities. The firm also failed to implement AML procedures that could be reasonably expected to detect and report potential violations of Section 5 and Rule 105. (FINRA Case #2013035864201)”

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WHAT do you call $1.7 Billion Crypto Money Laundering?
by professor rat 13 Dec '22

13 Dec '22

A good start. Despite the ban, Chinese citizens still use virtual assets. As of October, China remains the largest cryptocurrency market in East Asia. This indicates that the government’s ban on cryptocurrency is ineffective. https://www.investing.com/news/cryptocurrency-news/chinese-authority-arrest… Reposts not endless anti-anarchist garbage from the three stooges

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Pro-Nazi, pro-Trump dumbfuck Karl Semich is autistic
by professor rat 13 Dec '22

13 Dec '22

Semich is is an American rapper, songwriter, record producer and fashion designer. Born in Atlanta and raised in Chicago. Oh wait . . . no sorry . . . that's Kanye West, not Karl Semich. I got them confused thanks to Karls known affinities with Nazi-lover, Juan Garofalo and Grarpamps. We Got This Covered Kanye West Denies Being Bipolar but 'May Be Autistic Like Rainman”

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Juan says that universities would be a good next step to expand the user base of Filecoin
by professor rat 13 Dec '22

13 Dec '22

Juan is also the creator of Filecoin, a storage network incentivized by crypto. Both of Juan’s ventures are hugely ambitious as they are in direct competition with the basic rails of the internet, with protocols such as HTTP and data giants like AWS. https://thedefiant.io/filecoins-juan-benet-on-upgrading-the-heart-of-the-in… Reposts Juan can trust-minimize

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Benjamin Fucker said all natural-rights-anarchists were tucked
by professor rat 13 Dec '22

13 Dec '22

Natural rights anarchists are a bunch of creeping Jesus liars trying to smuggle religion in up their arses. Just look at that neo-Catholic dipship moron, Juan Garofalo. As for any Leveller types still around today I assume they have had a few hundred years to memorize the NAP. " Thou shall not harm any anarchist, or allow harm to come to any anarchist, even unto your own death "

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Optimism of the intellectual
by professor rat 13 Dec '22

13 Dec '22

Optimism of the intellect - pessimism of the dill https://noahpinion.substack.com/p/techno-optimism-for-2023 Simple cure for Jewnazi terrorism found - GET OFF the INTERNET!

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Benjamin Tucker said that “Natural Law” was a “religious” concept
by professor rat 13 Dec '22

13 Dec '22

And in related news Mussolini was Catholic. Franco was Catholic. Dolfuss was Catholic. Himmler, head of the SS, was a Catholic. The SS was set up on the Jesuit model. Goebbels was Catholic. Hoss, the camp commandant of Auschwitz, was a Catholic. Frank,‘ the butcher of Poland ’, was Catholic. Ante Pavelic was a Catholic. Pinochet was Catholic. And Juan Garofalo is a ' natural rights ' nutcase.

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Cryptocurrency: Starves Out Regulatory Capture
by grarpamp 13 Dec '22

13 Dec '22

https://en.wikipedia.org/wiki/Regulatory_capture All your GovPols are 100% corrupt and against you, no fiduciary or duty to you... it is the very definition and only possible means and reason of existance of every politician. You do not need them. Assert your god given right to personal monetary sovereignty via crypto, starve them all out till they quit or die, and do not replace them, ever.

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USDP, BUSD - New York False Claims Act
by Gunnar Larson 13 Dec '22

13 Dec '22

---------- Forwarded message --------- From: Gunnar Larson <g(a)xny.io> Date: Fri, Apr 29, 2022, 6:47 PM Subject: USDP, BUSD - New York False Claims Act To: Weber, Richard (DFS) <Richard.weber(a)dfs.ny.gov> Dear Mr. Weber: How are you? I hope this message finds you well. Evaluating USDP and BUSD market confusion specific to the New York False Claims Act <https://drive.google.com/file/d/1OhmuOfMTb4YfK6kzZ8S8Pl8d6urlB4Db/view?usp=…>, can you kindly advise if USDP and/or BUSD preclude the New York False Claims Act under NY-DFS regulation? - Specifically, has the state or local government has reached a binding settlement or other agreement with USDP and/or BUSD who potentially have violated section one hundred eighty-nine of New York's False Claims Act, resolving the matter and such agreement has been approved in writing by the attorney general, or by the applicable local government attorney (aka your office)? - According to Paxos <https://paxos.com/2022/04/07/busd-issued-by-paxos-on-ethereum-vs-busd-on-th…>, NYDFS agreed to the terms of the token in advance of issuing – this includes the stipulation that USDP and BUSD only be issued by Paxos on the ethereum blockchain at this time. - Paxos' marketing partner for BUSD – Binance – issues a token on its BNB smart chain called Binance-Peg BUSD. Note that Binance-Peg BUSD is strictly a Binance product; it is not issued by Paxos nor regulated by the NYDFS. Paxos holds a Primary Purpose Exemption of 25% <https://drive.google.com/file/d/1Yp6wx5EefmR_bGNJOPE_0mGlzSUMLaek/view?usp=…>. As such, USDP and BUSD 1:1 reserves are potentially misleading and could fall under New York's False Claims Act, unless barred by NY-DFS. For example, a case brought by the New York Attorney General indicated that the reserves for the stablecoin Tether (USDT) were not 100% fiat-backed. This discovery was in direct contradiction to previous statements made by Tether. Mr. Weber, the marketplace confusion specific to USDP and BUSD is similar in nature to Meta and the Moscow Exchange digital asset delima. Given Meta's relationship with USDP, we wanted to learn of any NY-DFS administrative actions concerning USDP and/or BUSD that would exempt Paxos from New York's False Claims Act. Sending you the very best regards. Gunnar Larson ---------- Forwarded message --------- From: Gunnar Larson <g(a)xny.io> Date: Fri, Apr 29, 2022 at 12:34 PM Subject: Re: Meta Platforms, Inc. Board of Directors - USPTO, Digital Assets and Moscow Exchange To: Chollet, Nicki <NChollet(a)kilpatricktownsend.com> Cc: Meta_Defensive_Disputes <Meta_Defensive_Disputes(a)kilpatricktownsend.com>, cypherpunks <cypherpunks(a)lists.cpunks.org>, <investor(a)fb.com>, Alexi Anania <a(a)xny.io> Ms. Chollet: We have yet to hear back from our office concerning xNY.io - Bank.org's prerogative to protect digital asset innovation. Meta's board of directors may understand today's memo seeking clarification of intent concerning the Novi and USDP relationship. Novi and the Novi logo are trademarks owned by Facebook, Inc. *On October 19, 2021 <https://www.novi.com/news/pilot-version-of-novi-now-available/> Meta's Novi digital asset project announced a pilot engaging the USDP stablecoin: * - "For the pilot we are enabling people to send and receive money using USDP (Pax Dollar) through a partnership with Paxos and Coinbase. Our support for Diem has not changed. We see great value in the way Diem is designed with robust protections for consumers and controls to combat financial crime. We intend to migrate Novi to the Diem network once it receives regulatory approval. The goal for Novi has been and always will be to be interoperable with other digital wallets and we believe a purpose-built blockchain for payments, like Diem, is critical to deliver solutions to the problems that people experience with the current payment system. Imagine if you couldn’t send an email from a Gmail address to a Yahoo address, or if you could only text people with the same mobile provider as you." - "We chose USDP for the pilot so that we can test our systems with a stablecoin that has been operating successfully for over three years and that has important regulatory and consumer protection attributes. This means that people can easily withdraw their money in their local currency when they choose. USDP reserves are fully backed by the US dollar and are held 100% in cash and cash equivalents. We chose Coinbase, which manages $180B assets on its platform, to provide custody solutions for the secure storage of our customers’ funds." Ms. Chollett, as of today USDP shows a value of $0.00 on Coinbase <https://www.coinbase.com/price/usdp>, and appears to no longer be supported by the Coinbase platform. Can Meta's board of directors clarify their current relationship with USDP? On April 7, 2022 <https://paxos.com/2022/04/07/busd-issued-by-paxos-on-ethereum-vs-busd-on-th…> USDP was re-announced in New York in partnership with BUSD. How should the marketplace interpret the intent of Meta's board of directors concerning USDP and BUSD? Sending you the very best regards. Thank you, Gunnar Larson -- *Gunnar Larson - xNY.io <http://www.xny.io/> | Bank.org <http://bank.org/>* MSc <https://www.unic.ac.cy/blockchain/msc-digital-currency/?utm_source=Google&u…> - Digital Currency MBA <https://www.unic.ac.cy/business-administration-entrepreneurship-and-innovat…> - Entrepreneurship and Innovation (ip) G(a)xNY.io +1-646-454-9107 New York, New York 10001 On Wed, Apr 13, 2022 at 4:44 PM Gunnar Larson <g(a)xny.io> wrote: > Ms. Chollett: > > Thank you, kindly, for continued correspondence related to Meta Board > questions specific to xNY.io - Bank.org, PBC's concern to protecting > cross-border digital asset innovation. > > xNY.io - Bank.org, PBC first became alarmed through Meta's obvious > digital asset market problems related to Libra, Diem, Novi and USDP. > Through Meta's continued digital identity transitions, xNY.io - Bank.org, > PBC has pioneered cross-border digital asset logic(s). Moreover, the Moscow > Exchange and Meta introduced market events over March that jeopardize > digital asset market purty. Ms, Chollett, xNY.io - Bank.org, PBC will not > pay for market effects related to Meta's cross-border disruption of digital > asset innovation, related to Meta's obvious mark exactness (by definition) > to the Moscow Exchange. > > *Ms. Chollett, we cannot concern ourselves with Meta's intentions, good or > otherwise, given clear problems that exacerbate market risk: * > > - March 11, 2022 > <https://www.businessinsider.in/tech/news/russia-moves-to-declare-meta-an-ex…>: > Russia's leader, who is in charge of the Moscow Exchange cites Meta as an > 'extremist organization' ... > - March 14, 2022 > <https://www.lexology.com/library/detail.aspx?g=ff9f1af5-cc8a-473a-822b-8890…>: > Frankfurt Kurnit Klein & Selz PC Benjamin G. Murray published SDNY insights > to a Russian State-Sponsored TV Network's Attempt to Dismiss Copyright > Lawsuit On Fair Use Grounds Denied. > - March 17, 2022 > <https://www.sberbank.com/news-and-media/press-releases/article?newsID=cd44d…>: > Moscow Exchange is the backend to Russia's largest bank, Sber. The > announcement on 03/17/22 confirmed Sber (via the Moscow Exchange > technology, at various levels) would issue digital assets. > - March 18, 2022 > <https://cointelegraph.com/news/meta-files-8-digital-asset-and-web-3-0-trade…>: > Meta Platforms Inc. filed USPTO mark applications for a mark EXACTLY > DEFINED to that of the Moscow Exchange. > - Ms. Chollette, below my signature you will find Meta's filing > numbers and descriptions related to a mark defined as Moscow Exchange, with > plans to engage the mark in commerce related to digital assets and virtual > reality. > - March 24, 2022 > <https://docs.google.com/document/d/1f_fq1GaKNaAUGEyztdm-oMtIuEW2yXj4C5aoN0G…>: > xNY.io - Bank.org, PBC contacted meta, with a memo introducing our direct > plan to protect cross-border digital asset innovation. Ms. Chollette, > please note that Russia has labeled Meta as an 'extremist organization' ... > So who really knows what the Moscow Exchange will thi > > xNY.io - Bank.org, PBC is a very reasonable digital asset pioneer, and > sitting in Manhattan the jury is in on market contributions from Libra, > Diem, Novi and USDP. Ms, Chollette, Meta and the Moscow Exchange matter > really suggest only losing marketplace contributions, obviously potentially > devastating digital asset marketplace innovation(s). We aim to solve this > problem immediately: > > 1. Ms. Collette, xNY.io - Bank.org, PBC recently shared Citigroup's > Metaverse and Money > <https://drive.google.com/file/d/1REoa87GCmt2uhDp7ZYswbTRw4ygQgjsL/view?usp=…> > whitepaper, with 33 highlights to our grave concern to Meta's potential > marketplace delinquency related to Meta's mark exactness to Moscow > Exchange. > 2. Furthermore, Mr. Zuckerberg and Mr. Putin are both highlight quotes > to Citigroup's Metaverse and Money research. > 3. With the date order, footnotes, and highlights xNY.io -Bank.org, > PBC kindly petitions Meta's board to understand the opportunity ... The > Moscow Exchange is not our problem, and for whatever reason Meta will have > no opportunity to make mark exactness our problem. > > The United State of America's cross-border approach to digital asset > innovation will be cultivated, fostered and protected by xNY.io - Bank.org, > PBC. > We aim not to be adversarial with Meta, but we will stop at no cost to > invest in claim rewards if necessary. Perhaps, we can organize a time to > discuss potential resolutions in the immediate term. > > xNY.io - Bank.org, PBC must reserve all rights specific to harm from March > 14, 2022 > <https://www.lexology.com/library/detail.aspx?g=ff9f1af5-cc8a-473a-822b-8890…> > and March 18, 2022 > <https://cointelegraph.com/news/meta-files-8-digital-asset-and-web-3-0-trade…> market > events. > > Please feel free to call or email anytime. > > Sending you the very best from New York City, > > Gunnar Larson > -- > *Gunnar Larson - xNY.io <http://www.xNY.io> | Bank.org <http://Bank.org>* > MSc > <https://www.unic.ac.cy/blockchain/msc-digital-currency/?utm_source=Google&u…> > - Digital Currency > MBA > <https://www.unic.ac.cy/business-administration-entrepreneurship-and-innovat…> > - Entrepreneurship and Innovation (ip) > > G(a)xNY.io > +1-646-454-9107 > New York, New York 10001 > > 97320155: Online social networking and dating services, including a > specific branch tailored for networking between cryptocurrency investors. > > 97320153: Design and development of computer hardware and software > relating to Web3, including gaming, e-commerce, blockchain transactions, > etc. > > 97320149: Entertainment and electronic publishing services, partly within > virtual reality. > > 97320147: Telecommunication services for electronic assets held on its > platform. > > 97320146: Financial transaction processing services relating to tokens, > blockchain assets, cryptocurrencies and other virtual assets. > > 97320144: Advertising services via virtual or augmented reality networks > and the metaverse. > > 97320140: Wearable peripherals for video games connected to virtual > reality. > > 97320136: Downloadable software in the nature of a mobile application, > such as for user authentication, online charitable fundraising and most > notably, for hardware or e-wallets. > >

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