December 2022 - cypherpunks - lists.cpunks.org

Memo #2 - Goldman Sachs Deferred Prosecution Agreement
by Gunnar Larson 07 Dec '22

07 Dec '22

February 1, 2022 BY ELECTRONIC MAIL Mr. John Marzulli United States Department of Justice Eastern District of New York 271 Cadman Plaza East Brooklyn New York, 11201 John.Marzulli(a)usdoj.gov Re: Memo #2 - Goldman Sachs Deferred Prosecution Agreement <https://www.justice.gov/criminal-fraud/file/1329926/download> Dear Mr. Marzulli: The Department of Justice has yet to respond to Memo #1 with our recent inquiry <https://docs.google.com/document/d/1OsxfjN3TUepftKklopkQDSMwFWstWozuku4IPPu…> to the 1Malaysia Development Berhad Deferred Agreement. Goldman Sachs' Deferred Prosecution Agreement <https://www.justice.gov/usao-edny/pr/goldman-sachs-resolves-foreign-bribery…> with the United States of America is in potential breach, with ethical enforcement being concerned. Memo #2 aims to associate the malfeasance in Malaysia with the Middle East. The Bank of London vs. The Bank of London and the Middle East - November 30, 2021 two New York based firms lead investment in The Bank of London based in the United Kingdom. - July 1, 2007 The Bank of London and the Middle East opened in the United Kingdom. - The Bank of London and the Middle East confirms they have no association with The Bank of London (correspondence referenced here <https://drive.google.com/file/d/1ZLYO6qxOX5TIn0kPd69SQbvG-mn0I5R_/view?usp=…> ). The Bank of London seemingly has been funded from New York to irritate the Middle East. Recently, we made 91 highlights of research <https://drive.google.com/file/d/1O2piNMJ3CI0wbfaFW33to3KhgOgZ8-dl/view?usp=…> associated with The Bank of London and the Middle East's recent sale to a firm in Kuwait. Harvey Schwartz is the Chairperson at The Bank of London, after spending over 20 years at Goldman Sachs Group, where he oversaw sales and trading, finance, technology, and operations. He completed his tenure as the firm’s President and Co-Chief Operating Officer. He joined Goldman Sachs in 1997 and subsequently held numerous senior leadership positions including Chief Financial Officer, Global Co-Head of the Securities Division, amongst other positions. He additionally served as a member of the firm’s Management Committee and co-headed its Risk Committee, Steering Committee on Regulatory Reform and Finance Committee. Mr. Schwartz established the firm’s Investment Policy Committee on which he also served as a member. It would appear that Mr. Schwartz has no friendly diplomatic agenda in London banking, potentially looking to profit off of The Bank of London and the Middle East. Furthermore, Goldman Sachs seemingly has a part in the scheme from New York. Bank of London and the Middle East is listed on the NASDAQ, Dubai. - Mr. Marzulli, during a recent telephone discussion together it was your general assessment that the Deferred Agreement in question was self policing. Can you kindly advise at your earliest convenience what (if any) DOJ systems, processes and control mechanisms are in place to monitor the purity of the Deferred Agreement? - Furthermore, if the Deferred Agreement is self-policing, can the DOJ kindly share any and all supporting material information that would prevent the agreement from being violated without the DOJ's general oversight? - Finally, we have made 28 highlights to Deferred Agreement <https://drive.google.com/file/d/1Yx88RMoeLyyfbNK0RtPl4r-m8N21_1Sp/view?usp=…> as a reference resource tool. Memo #1 and Memo #2 both outline instances that correspond with the associated highlight references. We are concerned that potential breaches to the Deferred Agreement are impacting our global enterprise. We are looking forward to learning more about the DOJ’s approach to assessing any potential breaches to the Deferred Agreement’s mandates. Respectfully yours with anticipation, 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

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Letter to SoFi CEO from United States Senate Committee on Banking, Housing and Urban Affairs
by Gunnar Larson 07 Dec '22

07 Dec '22

https://drive.google.com/file/d/1BTRDAHKkx1IO3Ih07O-qY2oU-0GciYeP/view?usp=… November 21, 2022 Mr. Anthony Noto Chief Executive Officer SoFi Technologies, Inc. 234 1st Street San Francisco, CA 94105 Dear Mr. Noto: We write to inquire about SoFi Technologies, Inc.’s (SoFi) progress to conform its digital asset trading activities to U.S. banking law. Over the past year, several meltdowns in the crypto market have wiped out trillions in value, including another huge crash last week. We are concerned that SoFi’s continued nonbank digital asset trading activities pose risks to consumers and safety and soundness risks to your institution. In February 2022, SoFi completed its acquisition of Golden Pacific Bancorp, a bank holding company (BHC) and its subsidiary Golden Pacific Bank, a national bank.1 As part of that transaction, SoFi received approval from the Federal Reserve to become a BHC and elected to be treated as a financial holding company (FHC) subject to consolidated supervision by the Federal Reserve.2 Additionally, SoFi received a conditional approval from the Office of the Comptroller of the Currency (OCC) to create a full-service national bank subsidiary insured by the Federal Deposit Insurance Corporation (FDIC).3 Following its conversion to a BHC, SoFi continues to operate a nonbank subsidiary called SoFi Digital Assets, an exchange for retail investors to buy and sell digital assets. In its letter dated January 18, 2022, granting approval, the Federal Reserve noted that “SoFi is currently engaged in crypto-asset related activities that the Board has not found to be permissible” for a BHC or an FHC. SoFi’s most recent annual report states that these impermissible activities are conducted by SoFi Digital Assets.4 Under the January 18, 2022 letter, SoFi has two years to either divest SoFi Digital Assets or conform its activities to the law, with the potential for up to three one-year extensions in the Federal Reserve’s discretion. During this conformance period, SoFi has committed not to “expand [its] impermissible activities,” except as specifically authorized by law. Specifically, SoFi has committed not to increase the “types of products and services offered” and the “established risk limits for total customer digital assets maintained in wallets that are accessible online . . . or held on balance sheet.” In addition, the OCC’s conditional approval restricts SoFi’s national bank subsidiary from conducting “any crypto-asset activities or services” without prior regulatory approval. We are concerned that SoFi’s continued impermissible digital asset activities demonstrate a failure to take seriously its regulatory commitments and to adhere to its obligations. First, SoFi’s apparent expansion of its digital asset services raises questions about progress towards meeting conformance commitments by January 2024. Two months after receiving approval to become a BHC, SoFi announced a new service allowing customers of its national bank to invest part of every direct deposit into digital assets with no fees. The company publicly billed this service as “the latest expansion of SoFi’s offerings to make it simpler to get started with cryptocurrency investing.”5 Second, SoFi’s facilitation of customer digital asset trading and holding digital assets on-balance sheet raises questions about the appropriate calculation of capital requirements. Under current capital rules, the capital treatment of these digital assets follows their accounting treatment rather than capital standards tailored to the risks of this particular asset class. While digital assets can pose the same risks as traditional financial assets, the recent market crash has highlighted concerning credit, market, liquidity, and operational risks associated with digital assets. Appropriate capital treatment is important because taxpayers could be on the hook if crypto- related exposures at SoFi Digital Assets ultimately require its parent BHC or affiliated national bank to seek emergency liquidity or other financial assistance from the Federal Reserve or FDIC. Third, SoFi’s standards for choosing which digital assets to offer its customers for trading raises investor protection concerns. According to criteria listed on SoFi’s website, the company’s policy is to list assets that “align with SoFi’s values, such as promoting financial inclusion and economic freedom.”6 But SoFi’s own investor protection materials posted on its website warn customers that at least one token listed on SoFi Digital Assets is “a crypto pump-and-dump” hazard with “no special use case or features” and that “[it] might be among the most high-risk endeavors an investor can take.”7 At the time SoFi issued this warning, the company had been offering this asset for several months and still offers it today. Facilitating retail sales of an investment product that SoFi has identified as a fraud and susceptible to market manipulation is incompatible with fundamental principles of investor protection and safety and soundness. Accordingly, we ask that you reply to the following questions no later than December 8, 2022: 1. Describe SoFi’s policies and procedures for: a. Determining which digital assets to offer and sell through SoFi Digital Assets. b. Ensuring that digital asset purchases and sales are conducted in compliance with applicable laws and regulations. c. Identifying any potential conflicts of interest and how those conflicts should be addressed. d. Monitoring customer complaints and their resolution. 2. How has SoFi determined the appropriate credit, market, and operational risk capital requirements for digital asset exposures, including customer digital assets and digital assets held on SoFi’s balance sheet? 3. Does SoFi Digital Assets offer any securities for purchase or sale? If so, how do SoFi Digital Asset’s existing registrations and licenses provide authorization to operate a platform for buying and selling those securities? 4. Describe SoFi’s plan to conform its digital asset trading activities to the BHC Act and Regulation Y by January 2024. How have the policies and offerings described in questions 1-3 changed, if at all, since January 18, 2022? How does its service allowing customers to invest part of their direct deposit in digital assets meet SoFi’s conformance commitments to the Federal Reserve and the OCC’s restrictions on engaging in digital asset activities within the national bank? Thank you for your attention and prompt response to these questions. Sincerely, Sherrod Brown Jack Reed United States Senator United States Senator Chris Van Hollen Tina Smith United States Senator United States Senator

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Chia is one of the most decentralized blockchains by node count
by professor rat 07 Dec '22

07 Dec '22

>>> with more than 100,000 global nodes, and we constructed our smart contracting language, based on Lisp, with security as the highest priority https://www.chia.net Reposts not product endorsements

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Cryptoanarchy has a severely underutilized spam-relay-filter
by professor rat 07 Dec '22

07 Dec '22

Its called APster and dates back to the mid-90's list - originally misdiagnosed as a bug! TIMOTHY " An anonymous computerized market will even make possible abhorrent markets for assassinations and extortion " C. MAY 1992 Post 1995 soon becoming a feature TIM " I guess now that the Pentagon is setting up a murder pool it can't be illegal for us to do it " MAY. 2003 https://marc.info/?l=cypherpunks Our registry may be a little corrupted but then again - what isn't?

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Kolektiva.social is a Mastodon instance built by and for anarchists
by professor rat 07 Dec '22

07 Dec '22

This is our chance to re-imagine social media, and our relationship to it. To rediscover the lost promise of the Internet. To construct new digital worlds in the burning shell of the old. And to do it together. The old paradigms are dying. It’s long past time that those who want to overthrow this miserable system break our addiction to data-mining surveillance platforms, built and maintained by our enemies. https://anarchistnews.org/content/kolektiva-social-media-and-anarchists Reposts not endorsements of failing aggregation portals

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Barry the Hunted
by professor rat 06 Dec '22

06 Dec '22

https://twitter.com/J0E007/status/1483717638220132355?cxt=HHwWhsC90ZbVnJcpA… Repsots from twats

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Cryptoanarchy jacking the culture
by professor rat 06 Dec '22

06 Dec '22

A societies culture may follow its political economy - or be led by it - or both - but either way its an indicator of our success when stuff like this happens. >>> A pair of popular electronic musicians who are also prominent NFT backers are teaming up—and drawing inspiration from their respective CryptoPunks profile pictures (PFPs). Steve Aoki and Justin “3LAU” Blau announced today that they have formed a supergroup via their Ethereum NFTs and will release new music under the name Punx. Though both are seasoned producers with their own respective sonic signatures, 3LAU tweeted that they plan to deliver a new style of electronic music through their Punx collaboration. https://decrypt.co/116571/djs-steve-aoki-3lau-form-cryptopunks-supergroup Reposts not Parisian's tiring of sans-culottes and red-caps

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The crypto-currency sector where being handcuffed to a corpse is a feature; not a bug
by professor rat 06 Dec '22

06 Dec '22

>>> the Federal Reserve, which has jacked up interest rates and plans to keep doing so. For Circle and other stablecoin issuers, this has amounted to a windfall since they’re sitting on billions of dollars in reserve funds that can be invested in T-bills to earn interest https://fortune.com/crypto/2022/12/06/the-crypto-industry-is-a-basket-case-… Reposts not necrophiliac ghouls called CIRCLE and TETHER

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Secretary Yellen, We’ve Got a “Staggering” Problem: New Report Shows Foreign Banks Have Secret Derivative Debt that Is “10 Times their Capital”
by professor rat 06 Dec '22

06 Dec '22

Speaking of staggering loads . . . Circle claims that each USDC is backed by a dollar held in reserve, or by other “approved investments”, though these are not detailed. The wording on the Circle website changed from the previous “backed by US dollars” to “backed by fully reserved assets” in June 2021. https://en.wikipedia.org/wiki/USD_Coin USDC reserves are regularly attested (but not audited) by Grant Thornton, LLP As of July 2022, Circle states that there are 55 billion USDC in circulation On October 15, 2021, Tether Limited paid a fine of USD $41.6 million for inaccurately claiming that minted USD₮ were 100% backed by fiat USD, when they were actually 100% backed by a combination of fiat USD and other assets such as “unsecured receivables, commercial papers, funds held by third parties, and other non-fiat assets” See your 55 - raise you 10! How many Tether USDT coins are there in circulation? USDT Price Live Data The current CoinMarketCap ranking is #3, with a live market cap of $65,504,587,968 USD. It has a circulating supply of 65,496,215,611 USDT coins and the max. supply is not available. Clap hands if you believe in these two crypto-banks and Fairies I think the whole FTX contretemps involves about 11 billion - not 55 - not 65. So whats the rumpus? We’re just warming up - billions is chump-change. WELCOME to the REVOLUTION! FLOOD the ZONE with FREE-MONEY!

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After 1.9 Million Votes, Warnock-Walker 2.0 Reaches Decision Day With Runoff
by Gunnar Larson 06 Dec '22

06 Dec '22

After 1.9 Million Votes, Warnock-Walker 2.0 Reaches Decision Day With Runoff https://www.bloomberg.com/news/articles/2022-12-06/georgia-voters-set-to-re…

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