November 2023 - cypherpunks - lists.cpunks.org

FTX Drama Extends to Bitter Fight Over Limited Insurance Pie (1)
by Gunnar Larson 12 Nov '23

12 Nov '23

https://news.bloomberglaw.com/insurance/ftx-drama-extends-to-bitter-fight-o… FTX Drama Extends to Bitter Fight Over Limited Insurance Pie (1) Sam Bankman-Fried said D&O insurer stopped paying legal fees FTX former general counsel says insurance payment plan unfair FTX’s legal drama doesn’t stop at Sam Bankman-Fried’s conviction, as the crumbled crypto exchange’s former executives fight over whether insurance policies will cover their attorney fees. At the heart of the dispute is a basic problem: there isn’t enough insurance money to go around. Bankman-Fried, FTX’s co-founder, sued one of the company’s insurers, the Continental Casualty Co., a day before his criminal trial started in October. He alleged the CNA Financial Corp. unit breached its contract by refusing to pay his legal bills. A week later, Daniel Friedberg, FTX’s former general counsel and chief regulatory officer, asked to join the suit, saying it was unfair he received nothing while Bankman-Fried and other executives burned through the $20 million directors and officers insurance policy. The former crypto mogul voluntarily dismissed his complaint against Continental Monday night, taking this insurance fight behind doors four days after his jury conviction. Friedberg’s lawyers didn’t immediately respond to a request for comment on the dismissal. But such insurance disputes go beyond FTX, raising broader questions about how to split up D&O insurance payments when so many executives are competing for a limited pool of funds. Enron Corp.’s D&O insurers gave up on the dilemma entirely, and deposited $200 million of a $350 million policy limit to the court, asking the US District Court for the Southern District of Texas to decide how to slice the insurance pie when the fraudulent company’s directors vied for coverage of their defense costs in 2004. In FTX’s case, D&O insurers have to shoulder attorney fees covering more than 20 executives targeted in criminal and civil investigations and lawsuits tied to the fallen crypto empire. Friedberg, whom FTX’s new management alleged was a fixer for Bankman-Fried and FTX, says the insurers are acting in bad faith if they don’t allocate the payments equally. There are no uniform rule across states, and insurance companies usually pay claims on a first-come, first-served basis, but that could have changed if Friedberg were permitted to intervene in Bankman-Fried’s complaint. “Any insured executives under a D&O policy should want to know how their own policy would distribute proceeds in a similar situation,” said Jonathan Reid Reich, an insurance litigator at Womble Bond Dickinson. First Come, First Served The insurance row started in July, when Friedberg objected to the D&O carriers’ plan to distribute payments among FTX’s former executives, according to court records. FTX’s new management had sued Friedberg the previous month, claiming he helped Bankman-Fried steal billions in customer funds. The former general counsel, who allegedly made millions at FTX, said he paid over $800,000 in defense costs out of pocket and is defending himself in one civil action after he failed to get D&O coverage. “I have limited resources and will not be able to continue to fund my own defense,” Friedberg said in his motion to intervene. FTX is covered by four D&O insurers, each taking on a $5 million policy limit. The primary insurer, Beazley Plc, and the first “excess” insurer, QBE Insurance Group Ltd., already paid out their full share earlier this year. The second excess insurer, CNA subsidiary Continental Casualty Co., had paid over $871,000 as of September, then stopped sending in payments “on a current basis” as required by the policy, according to Bankman-Fried’s complaint. The last carrier, Hiscox Ltd., deposited the insurance funds with the US District Court for the Northern District of California in August—shortly after Friedberg objected to the allocation plan—asking the court to decide how to divide its $5 million among the executives. Hiscox said the distribution could be affected by facts uncovered in litigation against FTX and its executives, including in future trials. “Hiscox was basically saying, we know we owe this money, we just don’t know who we owe it to, and we’ll leave it to the court to allocate it,” said Kevin LaCroix, executive vice president at insurance broker Ryan Specialty LLC. Hiscox’s approach could also be a way to stave off any further suits. “It’s a preemptive move by an insurer to protect itself from claims of bad faith by those who get short-changed,” said Paul Curley, a Kaufman Borgeest & Ryan LLP partner who represents insurers. Evidence of Fraud In his motion to intervene, Friedberg said the insurers violated California’s equitable allocation rule by letting Bankman-Fried’s legal costs devour the insurance money just because his claims came in first. Friedberg asked Continental not to follow Beazley and QBE’s approach. Continental, which was sandwiched between bad-faith allegations from both Bankman-Fried and Friedburg, could have followed what Hiscox did by letting the court decide how to allocate the funds. But that would have acknowledged there is a basis for insurance coverage to begin with—a point the insurer may separately wish to contend. The D&O policy has an exclusion for claims connected to criminal fraud, but the provision can’t be enforced yet because it requires a non-appealable conviction, said Jennifer Farina, a partner at McCarter & English LLP who represents policyholders. Even with a fraud verdict, Bankman-Fried still has a right to seek insurance payments until all appeals are exhausted, she said. Continental may also be looking for any evidence coming out of litigation showing that Bankman-Fried or other FTX executives lied about the company’s financials on the insurance application—a separate cause for refusing payment, Curley said. FTX’s insurance was issued in August 2022. A few months earlier, the company had created seven alternative balance sheets for one of its lenders, according to testimony from Caroline Ellison, the former CEO of FTX’s sister hedge fund, Alameda Research, and Bankman-Fried’s former girlfriend. That could bolster’s Continental’s efforts to avoid payment, attorneys say. “The facts are not going to get worse for the insurance company; they’re only going to get better,” said Reich. “The vast majority of the evidence supports an insurer’s argument that there was a long-running fraud, which involved many of the insureds, and began before the policy came into force.” CNA declined to comment. ‘Lose-Lose Situation’ If Continental or other insurers seek to deny coverage or recoup payments on the grounds of insurance application fraud, they would need to target those executives who signed their names on the form. Insurance attorneys questioned whether it’s worthwhile for Continental to take that approach when there are so many executives filing for payment. Why would Continental fight against coverage “when they’re going to exhaust it anyway, whether it’s paying SBF or paying someone else?” asked Curley. “It’s a lose-lose situation. If you make the payments, certain people are going to complain; if you don’t make the payments, certain people are going to complain,” he said. The case is Bankman-Fried v. Continental, N.D. Cal., No. 5:23-cv-05048. (Updates throughout with Sam Bankman-Fried's voluntary dismissal of case.) To contact the reporter on this story: Daphne Zhang in New York City at dzhang(a)bloombergindustry.com To contact the editors responsible for this story: Michael Smallberg at msmallberg(a)bloombergindustry.com; Keith Perine at kperine(a)bloomberglaw.com; Anna Yukhananov at ayukhananov(a)bloombergindustry.com Learn About Bloomberg Law AI-powered legal analytics, workflow tools and premium legal & business news.

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Semich is worse than gramps, sorry, SAM ALTMAN is worse than MOLLUSK - yes?
by pro2rat＠yahoo.com.au 11 Nov '23

11 Nov '23

Of all tyrannies, a tyranny sincerely exercised for the good of its victims may be the most oppressive. It would be better to live under robber barons than under omnipotent neo-marxist busybodies. The robber baron's cruelty may sometimes sleep, his cupidity may at some point be satiated; but those who torment us for our own good will torment us without end for they do so with the approval of their own shitty religion.

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Re: cypherpunks Digest, Vol 125, Issue 22
by Kythrasuntamer 11 Nov '23

11 Nov '23

I just use localmonero to bypass kyc rules. I will. Literally go. Out of. My. Way to not comply Sent from Proton Mail mobile \-------- Original Message -------- On Nov 11, 2023, 7:23 AM, < cypherpunks-request(a)lists.cpunks.org> wrote: > > Send cypherpunks mailing list submissions to cypherpunks(a)lists.cpunks.org To subscribe or unsubscribe via the World Wide Web, visit https://lists.cpunks.org/mailman/listinfo/cypherpunks or, via email, send a message with subject or body 'help' to cypherpunks-request(a)lists.cpunks.org You can reach the person managing the list at cypherpunks-owner(a)lists.cpunks.org When replying, please edit your Subject line so it is more specific than "Re: Contents of cypherpunks digest..." Today's Topics: 1. \#Alert eIDAS 2.0 (EU wants to force browsers to use potentially insecure government certificates) (zeynep(a)keemail.me) 2. Anonymity for all - mixmasters for the masses - globalized anarchism now! (professor rat) 3. Fwd: Mayor Eric Adams NYCCoin Touting (Gunnar Larson) ---------------------------------------------------------------------- Message: 1 Date: Fri, 10 Nov 2023 23:54:26 +0100 (CET) From: zeynep(a)keemail.me To: Cypherpunks Subject: \#Alert eIDAS 2.0 (EU wants to force browsers to use potentially insecure government certificates) Message-ID: Content-Type: text/plain; charset="utf-8" Hello? I hope everyone is ok.?I think this issue is important so I think all of you should read this email I wrote.? For years, I have been immersed in the world of cryptography and have worked as a researcher in the field of digital privacy. Recently, there have been numerous developments that give cause for concern. As a digital privacy activist, I am committed to raising awareness about the critical need for robust privacy protections in today's interconnected world. The ever-expanding digital landscape necessitates vigilant advocacy to ensure that individuals rights to privacy are upheld and respected. ?The EU's planned laws would use emerging technologies to detect new and existing child sexual abuse material (CSAM) and child grooming activities, and would give national authorities the power to oblige digital services to scan users? communications, including encrypted messages.??? https://www.euronews.com/my-europe/2023/10/19/planned-eu-laws-on-child-sexu… The proposed legislation mandates the implementation of a compulsory scanning protocol for communication service providers, encompassing social media platforms and instant messaging applications, which facilitate the exchange of textual, auditory, photographic, and video content inclusive of all user data. The eIDAS 2.0 proposal, aimed at establishing a secure framework for trust services within the EU, has raised concerns due to recent undisclosed alterations made during the legislative process. These changes, allowing Member States to access encrypted data, raise alarming implications for mass surveillance. Collaborating with esteemed scientists and NGOs, an open letter has been crafted to address these critical risks and propose concrete solutions to ensure enhanced privacy protections in the eIDAS 2.0 framework. This letter meticulously outlines the substantial risks associated with the eIDAS 2.0 proposal and offers concrete suggestions for mitigating these issues. The letter is here: https://nce.mpi-sp.org/index.php/s/cG88cptFdaDNyRr As an individual deeply invested in digital? privacy and security, I find myself increasingly apprehensive about the implications of the eIDAS 2.0 proposal. While the initial intent was to establish a fortified legal framework for trust services within the EU, recent undisclosed alterations have raised significant concerns. One of the most troubling aspects is the provision granting Member States the authority to insert their keys into browsers, enabling the interception of encrypted traffic. This opens the door to potential mass surveillance, infringing upon the fundamental right to privacy. Additionally, the restrictions on security checks for encryption keys, limited by ETSI, pose a potential roadblock to the development of innovative, higher-level protective measures. Furthermore, the proposal's commendable effort to create a digital wallet for mobile identity is marred by a critical oversight. Citizens should have the option to employ anonymous credentials or pseudonyms to shield their online interactions. Unfortunately, the current draft makes the implementation of unlinkability optional, potentially subjecting citizens privacy to the discretion of the Member State with the weakest safeguards. These concerns are not merely speculative, but rooted in the need to protect individual liberties in an increasingly interconnected digital landscape. It is imperative that we prioritize privacy rights and work towards a balanced framework that ensures the security of trust services without compromising personal freedoms. In addition, most artificial intelligence systems are inherently flawed, rendering them susceptible to potential misuse under the law. Governments, under the pretext of combating child exploitation, can scan the data of a majority of users, thereby infringing upon fundamental human rights. This grants governments the power to surveil and exert control over any citizen at their discretion. Perhaps we can discuss what we might accomplish together. Regards? Zeynep Aydo?an? -------------- next part -------------- A non-text attachment was scrubbed... Name: not available Type: text/html Size: 5321 bytes Desc: not available URL: \------------------------------ Message: 2 Date: Fri, 10 Nov 2023 23:56:20 +0000 (UTC) From: professor rat To: CypherPunks Subject: Anonymity for all - mixmasters for the masses - globalized anarchism now! Message-ID: <487824711.1783700.1699660580170(a)mail.yahoo.com> Content-Type: text/plain; charset=UTF-8 These are cryptoanarchist benchmarks and stand in total opposition to all govt KYC/ AML measures.?? There is only one question - who is to be master? - that is all ( Humpty Dumpty ) Cypherpunks are all about privacy for the poor and transparency for the powerful.? Amirite? The possibility of anonymous speech, and publication is vital for an open society and genuine freedom of speech. " Speech ? is also defined as computer code.in US law https://en.wikipedia.org/wiki/Bernstein\_v.\_United\_States Apple cited Bernstein v. US in its refusal to hack the San Bernardino shooter?s iPhone, saying that they could not be compelled to ?speak? (write code) The general sentiment of mankind is that a man who will not fight for himself, when he has the means of doing so, is not worth being fought for by others, and this sentiment is just. For a man who does not value freedom for himself will never value it for others, or put himself to any inconvenience to gain it for others. Such a man, the world says, may lie down until he has sense enough to stand up. It is useless and cruel to put a man on his legs, if the next moment his head is to be brought against a curbstone. Advocates for KYC/ AML sound like they will die in the ditch for any govts right to suppress us code-talkers.? Perhaps its time we indulged them.? The same rotten creepy criminals want to attack our rights of association and disassociation via mixmasters ( " Everyone a remailer " ) They would drag us all back to the dark ages.? Naturally, they have all earned killing. " Government is best which governs least"; and I should like to see it acted up to more rapidly and systematically. Carried out, it finally amounts to this, which also I believe??That government is best which governs not at all? Thoreau " . . . governance should be decentralized? The real question is how decentralized governance should be applied in every particular case." https://www.benzinga.com/markets/cryptocurrency/23/11/35733564/blockchain-r… Reposts from corpse-media sources would smell as sweet - but not for much longer ------------------------------ Message: 3 Date: Sat, 11 Nov 2023 10:22:47 -0500 From: Gunnar Larson To: cypherpunks(a)cpunks.org Subject: Fwd: Mayor Eric Adams NYCCoin Touting Message-ID: Content-Type: text/plain; charset="utf-8" ---------- Forwarded message --------- From: Gunnar Larson Date: Fri, Mar 10, 2023, 4:00 PM Subject: Mayor Eric Adams NYCCoin Touting To: Cc: , Harris, Adrienne A (DFS) < Adrienne.Harris(a)dfs.ny.gov> Please find the attached memo with reference footnotes. -- March 10, 2023 BY ELECTRONIC MAIL Ms. Camille Joseph Varlack Office of the Mayor of New York City City Hall Park, 260 Broadway New York, NY 10007 United States PressOffice(a)CityHall.NYC.gov Re: Mayor Eric Adams NYCCoin Touting Dear Ms. Joseph Varlack: Today?s memo is to kindly submit xNY.io - Bank.org's inquiry into Mayor Eric Adams' promotion of NYCCoin. 1. The federal securities laws are clear that any celebrity or individual who promotes digital assets must disclose the nature, source and amount of compensation they received in exchange for the promotion. 2. As a matter of ethics, risk and compliance associated with digital asset innovation, xNY.io asks if NYCCoin promotion by the Mayor of New York City damaged the market for the xNY digital asset (by, for example, devaluing it through parody or sealed via embossed criticism). 3. xNY.io - Bank.org concerns made above have evidentiary support to interlocking director and officer conflicts recognized by the Department of Justice as potential threats that stifle individual and corporate freedom. Ms. Joseph Varlack, as a matter relating to working at one of the world's most ethical companies, famous for risk management and corporate governance, and as an internationally recognized Blockchain Scholar, I must adhere to federal securities laws. - As such, I classify Mayor Adams as an individual who promoted the digital asset NYCCoin and must disclose the nature, scope, and amount of compensation associated. A failure to disclose this information may violate the anti-touting provisions of the federal securities laws. Mayor Adams' making these endorsements may also be liable for potential violations of the anti-fraud provisions of the federal securities laws, for participating in an unregistered offer and sale of securities, and for acting as unregistered brokers. xNY.io - Bank.org respectfully requests the Office of the Mayor of New York City to respond to this request by Wednesday March, 15 2023 by Noon EST. Respectfully yours with appreciation, Gunnar Larson - xNY.io \- Bank.org MSc \- Digital Currency MBA \- Entrepreneurship and Innovation (ip) G(a)xNY.io +1-917-580-8053 -------------- next part -------------- A non-text attachment was scrubbed... Name: not available Type: text/html Size: 14234 bytes Desc: not available URL: \-------------- next part -------------- A non-text attachment was scrubbed... Name: xNY.io - Bank.org \_ Mayor Eric Adams NYCoin Tweet Proceeds .pdf Type: application/pdf Size: 90660 bytes Desc: not available URL: \------------------------------ Subject: Digest Footer \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ cypherpunks mailing list cypherpunks(a)lists.cpunks.org https://lists.cpunks.org/mailman/listinfo/cypherpunks ------------------------------ End of cypherpunks Digest, Vol 125, Issue 22 \*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*

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Fwd: SpaceX Interlocking Directors’ Intent to Manipulate Markets
by Gunnar Larson 11 Nov '23

11 Nov '23

The whole FTX and Trump fraud saga in New York has kept me off this list. Back, and better than ever, this last couple of weeks have me somewhat nervous, if xNY.io dos not share updates on this list, our friends at X.com might not appreciate the Bank.org endeavor. PYUSD sounds funny, is it just me, or? Grabbing New York human rights law by the horns is a cross border affair. ---------- Forwarded message --------- From: Gunnar Larson <g(a)xny.io> Date: Thu, Nov 2, 2023, 12:52 PM Subject: Re: SpaceX Interlocking Directors’ Intent to Manipulate Markets To: <letitia.james(a)ag.ny.gov> Cc: <ir(a)twitter.com>, Harris, Adrienne A (DFS) <Adrienne.Harris(a)dfs.ny.gov>, <district3(a)council.nyc.gov>, Reader, Shaun <sreader(a)curtis.com> Dear Madam Attorney General James: xNY.io - Bank.org kindly seeks a response from your office concerning the message below. Today in Manhattan, the FTX case will soon be sent for jury deliberation. According to NPR, "... FTX founder Sam Bankman-Fried is accused of orchestrating one of the largest financial frauds in history." Additionally, today Donald Trump's civil fraud trial continues in New York City. Attorney General James, as you are aware xNY.io - Bank.org has an ongoing dialog with your office concerning a 'RICO.' The New York State Department of Financial Services records office has responded with a memo concerning the "Las Vegas Museum of Organized Crime and Law Enforcement" here: https://drive.google.com/file/d/1reLapm-6C0QJZhPKIPtN5HZGbYhTxZMh/view?usp=… . This memo aims to execute N.Y. Executive Law, Article 15 § 297. Procedure 1. Additionally, § 298-a. Application of article to certain acts committed outside the state of New York, (Israel Crisis). Kind regards, Gunnar -- Gunnar Larson xNY.io - Bank.org MSc - Digital Currency MBA - Entrepreneurship and Innovation (ip) G(a)xNY.io +1-917-580-8053 New York, New York 10001 On Sat, Jun 18, 2022, 4:44 PM Gunnar Larson <g(a)xny.io> wrote: > Dear Attorney General Letitia James: > > xNY.io - Bank.org, PBC seeks to earn your esteemed approval to engage the > New York False Claims Act under urgent pretences. > > Today's correspondence marks the first time in history, a self-titled > "mafia" (aka, the "PayPal Mafia '') is compelled to answer publicly the > decision to manipulate both the New York False Claims Act and the Martin > Act against one another. > > - Madam Attorney General, your leadership approach has historical > context > <https://www.nytimes.com/2019/12/10/climate/exxon-climate-lawsuit-new-york.h…> > to logic and ultimate Exxon Mobil vs. New York State > <https://drive.google.com/file/d/1nLp9RIYw8mAh1SRG8E9PMEK94SV-viUN/view?usp=…> case > precedent. > - xNY.io - Bank.org, PBC research and development notes our hawkish > approach to ESG, D&O and LBO innovation. > - xNY.io - Bank.org, PBC sees this not a democrat vs. republican > concern as Mr. Elon Musk (CEO, SpaceX and Tesla) claims. False pretense to > protect free speech are now being debated as party to a $200B pryamid > scheme. > > Ms. James, on May 21, 2022 xNY.io - Bank.org, PBC > <https://docs.google.com/document/d/1lv9Wt6y1ld4bNap0z3epIxttEGiP_oVpfxH0GTS…> > contacted the SpaceX Corporation with reasonable concern of CEO Musk's > intent behind the $44B Twitter LBO. The Orlando Police Pension Fund shared > similar concerns to the intent behind Twitter's LBO as illegal. > > Since, market forces suggest that SpaceX and Tesla directors are part of > interlocking directorate, self proclaimed the PayPal Mafia. The racket > could waterfall to problem(s) at the New York State Department of Financial > Services with Superintendent association to D&O insurance regulation. > > Ms. James, xNY.io - Bank.org, PBC seeks your office's urgent assessment of > this matter. We aim to earn approval to explore the New York False Claims > Act to confront SpaceX as a racket. > > *Like a house of cards, the PayPal Mafia racket could risk a waterfall of > D&O interlocking directorate insolvencies. In summary: * > > 1. xNY.io - Bank.org's May 21, 2022 memo to SpaceX questioned intent > behind baseless claims pioneered by SpaceX's CEO, branding ESG a scam via > Exxon Mobil. Obviously, Exxon Mobil vs. New York State > <https://drive.google.com/file/d/1nLp9RIYw8mAh1SRG8E9PMEK94SV-viUN/view?usp=…> alludes > Mr. Musk party to a false claim. > 2. SpaceX has failed to establish a preponderance of evidence and > burden of proof not a racket. > 3. SpaceX has failed to prove that Twitter's LBO is not false claim to > free speech protection. > 4. True social innovation cannot sponsor a fake news racket that could > jeopardize space exploration and war. > 5. Twitter's LBO dealmakers (Goldman Sachs and JP Morgan Chase) > company balance sheets, financial statements and other corporate records do > not impact xNY.io - Bank.org, PBC holding a racket accountable to false > claims. > > The CEO of SpaceX and Tesla leveraging Exxon Mobil as an ESG > securities scam does not preclude the PayPal Mafia's intent to engage false > claims at the sacrifice of New York State's financial future. > > Madam Attorney General James, we hope to hear from your esteemed office > and learn assessment of best next steps. > > Thank you, > > Gunnar > > -- > *Gunnar Larson * > *xNY.io <http://www.xny.io/> - Bank.org <http://bank.org/>, PBC* > > 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 Sun, May 22, 2022 at 9:34 AM Gunnar Larson <g(a)xny.io> wrote: > >> May 21, 2022 >> >> BY ELECTRONIC MAIL >> >> SpaceX Corporation >> Board of Directors >> One Rocket Road >> Hawthorne, California >> 90250 >> Sales(a)SpaceX.com >> >> Re: Potential SpaceX Interlocking Directors’ Intent to Manipulate >> Markets >> >> Dear SpaceX Board of Directors: >> >> From our New York headquarters, xNY.io - Bank.org, PBC embodies the >> notion that rather than a merry-go-round, the process of change and >> innovation is like a slide. >> >> Today’s memo aims to notify the SpaceX Corporation of concern of >> potential market manipulation that could impact cross-border digital asset >> innovation, free speech in the United States of America, the global ESG >> economy and Moon exploration. >> >> Please find the attached memo >> <https://docs.google.com/document/d/1lv9Wt6y1ld4bNap0z3epIxttEGiP_oVpfxH0GTS…> >> addressed to SpaceX's board of directors. >> >> Respectfully, >> >> Gunnar Larson >> >

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FBI seizes New York City Mayor Eric Adams' phones, iPad | AP News
by Gunnar Larson 11 Nov '23

11 Nov '23

https://apnews.com/article/new-york-mayor-eric-adams-fbi-investigation-0349… FBI seized phones, iPad from New York Mayor Eric Adams in escalation of fundraising investigation BY JAKE OFFENHARTZ Updated 6:17 PM EST, November 10, 2023 NEW YORK (AP) — FBI agents quietly seized phones and an iPad from New York City Mayor Eric Adams early this week as part of an investigation into political fundraising during his 2021 campaign, his attorney disclosed Friday. The seizures happened as Adams was leaving a public event in Manhattan, according to a statement from the mayor’s attorney, Boyd Johnson. “On Monday night, the FBI approached the mayor after an event. The Mayor immediately complied with the FBI’s request and provided them with electronic devices,” Johnson said. “The mayor has not been accused of any wrongdoing and continues to cooperate with the investigation.” ADVERTISEMENT The seizure of the devices, first reported by The New York Times, came four days after federal agents searched the Brooklyn home of Adams’ top campaign fundraiser, Brianna Suggs. That search prompted the mayor to cancel a planned trip to meet with White House officials in Washington and instead return to New York.

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Will The UK Supreme Court Decision In PACCAR Affect Hong Kong Litigation Funding? - Litigation Finance Journal
by Gunnar Larson 11 Nov '23

11 Nov '23

Check out my recent article: https://litigationfinancejournal.com/will-the-uk-supreme-court-decision-in-… The Hong Kong Department of Justice’s approach to litigation finance and third party funding is coming into greater focus following the UK Supreme Court’s July 26, 2023 ruling on R. (on the Application of PACCAR Inc) v Competition Appeal Tribunal [2023] UKSC 28. Mondaq reports that PACCAR has defined “damaged-base agreements” or “DBAs” in the United Kingdom. DBAs are strictly regulated in the UK, now including litigation funding agreement contract law. Many UK courts have operated under the assumption that funding of litigation agreements does not fall under the purview of DBAs. PACCAR’s Supreme Court decision has sparked a fervent debate around this topic. Mondaq says that Hong Kong DBA relevancy differs from the UKs DBA approach. Specifically, in Hong Kong, champerty and maintenance are illegal factors that can lead to a fine and prison sentence. It’s important to note that Hong Kong does allow waivers to the general prohibition of litigation investment if: 1. Third parties share a common interest in funding the outcome of a case. 2. Accessible justice is a prime consideration. 3. Insolvency proceedings are necessary.

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How the Brooklyn company involved in Mayor Adams’ FBI probe avoided fundraising disclosures - Gothamist
by Gunnar Larson 11 Nov '23

11 Nov '23

https://gothamist.com/news/how-the-brooklyn-company-involved-in-mayor-adams… A New York construction company threw a fundraising party for Eric Adams in 2021 that managed to avoid disclosure under city campaign laws requiring the company to register with the city’s Campaign Finance Board. KSK, a Brooklyn-based construction company with strong Turkish ties, is believed to be at the center of a federal inquiry into campaign donations for the mayor. The company came under scrutiny after FBI agents raided the home of Adams’ top fundraiser Brianna Suggs and the New York Times obtained a warrant suggesting foreign nationals associated with KSK may have donated through a straw donor scheme. Neither Adams nor Suggs have been accused of any wrongdoing and it remains unclear who the FBI is targeting in the investigation. According to interviews and campaign finance data, KSK and the Turkish American Business Network invited some two dozen people to a fundraising event at KSK’s Williamsburg office in May 2021. Election lawyers interviewed by Gothamist said the company should have registered as a campaign “intermediary” but there’s no record of it having done so. The Adams campaign disputes that the event qualified KSK as an intermediary, saying it compensated the company for the event and therefore was the official sponsor. But no record exists in the Campaign Finance Board's files of any payment to KSK on behalf of the Adams campaign, and the campaign has not provided any receipts to Gothamist. “None of those inquiries were flagged as possible straw donors," said Adams campaign spokesperson Evan Thies in a statement. "The inquiries were about possible unreported intermediaries, of which there were none required to be reported." According to election law, when someone “solicits contributions to a candidate” that person is required to fill out an intermediary statement declaring the donations they helped bundle. It’s unclear whether the party is related to the FBI’s search. KSK did not return multiple requests for comment. The May event yielded nearly $75,000 with matching funds, according to Campaign Finance Board records. “It was at KSK’s offices,” said Tahir Demircioglu, an architect who attended the fundraiser. “It's not a big office, between 30 and 50 people, I would say.” Attendees said people of Turkish descent make up much of the company’s staff. According to Campaign Finance Board records, the Adams campaign lists four intermediaries, none of whom bundled donations in May 2021, the time of the KSK party. “In my opinion, it is a fundraiser,” said Sara Steiner, an election lawyer who specializes in city election law. “There would be an intermediary form filled out by whoever it was who was organizing and inviting people to the fundraiser.” According to campaign finance records, 38 people who listed their occupation or company as affiliated in the construction industry donated money to Adams that night, May 7, 2021. Their donations totaled $34,620, and $5,000 of that was then matched 8-to-1 with tax dollars for a grand total of $74,620. “I would say most of them were Turkish and mostly in construction,” said Metehan Akdag, an engineering consultant who also attended the event. “Mostly people who work with KSK.” He described a meeting that’s fairly typical in city politics. “People brought checks, and I think I donated through a webpage,” Akdag said, who added that there was a suggested donation. “They were saying that it should be around $250.” Akdag said most of the people who attended the event sought work from KSK — subcontractors who get in the company’s good graces have a better chance of getting jobs when they come up. “That's how it is throughout the whole industry,” he said. 'You want to know who's involved' The rules around fundraising transparency are meant to discourage quid pro quo relationships between donors and elected officials. “It's a perfect example of why the intermediary rule is really useful,” Steiner, the election lawyer, said. “Businesses that are dependent on them for contracts, who are in turn dependent on the city, you really do want to know who's involved in this because that's the kind of thing that can lead to corruption.” KSK has at least 33 active construction jobs in Brooklyn, Manhattan, Queens and the Bronx, Department of Buildings records show. Some of the projects have scores of complaints, inspection requests and permits pending before city agencies. Steiner said the city’s Campaign Finance Board, which is in charge of checking candidate disclosures, typically assigns an auditor to each campaign. The Campaign Finance Board declined to comment on its correspondence with the Adams campaign regarding this party. "The campaign appropriately responded to each and every flag made by the CFB as required," Thies said. The CFB suggested the rules need clarification. “A host of a fundraiser that's organized independently of the campaign must be reported as an intermediary,” Eric Friedman, assistant executive director of the Campaign Finance Board, said in an interview. “This discussion about intermediaries is a perfect example of a law that needs to be reviewed to ensure that it's meeting the challenges of the way that campaigns work today.” Attendees at the fundraiser at KSK’s offices describe the event as minor. “It’s insane, this was a small fundraiser,” Demircioglu said. “This is a witch hunt, in my personal opinion there is nothing to look at.” Suggs, the Adams campaign fundraiser and consultant whose home the FBI raided last week, also donated $20 the night of KSK’s event, according to records. 'He's practically Turkish' Attendees of the May event described many of KSK’s employees as still working at their desks when Adams arrived. He stayed for approximately half an hour, and spent most of his time there on a phone call in a separate office. Adams took photos with several attendees and answered their questions. “He gave a very short speech,” Akdag said. “His joke was that he's practically Turkish because every time he flies somewhere he takes Turkish Airlines and he lays over in Istanbul.” When Adams helped raise a flag in the Financial District late last month to mark the 100th anniversary of day Turkey becoming a republic, he repeated another favorite quip: “New York City is the Istanbul of America." The FBI raided Suggs' home a week later, placing a spotlight on the mayor's long-held fascination with the republic, which dates back to when he was a Brooklyn-based state senator roughly a decade ago — long before he would become borough president and mayor. As Brooklyn borough president, Adams made multiple trips to the country at the border of Asia and Europe — which he’s repeatedly touted over the years. But it’s far from the only foreign country he’s visited or promoted; Adams has frequently traveled abroad as an elected official, and has hosted dozens of flag-raising ceremonies since taking office. “I'm probably the only mayor in the history of this city that has not only visited Turkey — Türkiye — once, but I think I'm on my sixth or seventh visit to Türkiye,” Adams said at the October ceremony, using the country’s preferred pronunciation. On PIX11’s “PIX on Politics” on Sunday, Adams said he doesn’t have a specific fascination with Turkey; it’s a fascination with all countries with significant immigrant communities in New York City. Clarification: This story has been updated to include comment and information provided by the Adams campaign.

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Fwd: FTX DR 5-105 Records Request
by Gunnar Larson 11 Nov '23

11 Nov '23

---------- Forwarded message --------- From: Gunnar Larson <g(a)xny.io> Date: Fri, Nov 10, 2023, 4:01 PM Subject: Fwd: FTX DR 5-105 Records Request To: <letitia.james(a)ag.ny.gov> Cc: Harris, Adrienne A (DFS) <Adrienne.Harris(a)dfs.ny.gov>, Reader, Shaun < sreader(a)curtis.com>, <ftxquestions(a)kroll.com>, <frc(a)fincen.gov> Madam Attorney General: We were doing the EOY-23 wrap and noticed potential FTX conflicts. Has New York State conducted a similar conflicts check as the assets are now under the BitLicense purview? Similarly, NY-DFS has sent xNY.io - Bank.org communications regarding STX. Are we to assume that FTX and STX regultion in New York are under excess D&O coverage? Yesterday we received a notice that FTX's excess D&O was something we should check with you on. When we spoke with FinCEN on STX association last year, they mentioned to reach out to Treasury's kleptocracy division. STX and NYCCoin are a open D&O policy matter and I am just coverning all bases to make sure FTX has nothing to do with this. I am not sure how Kroll has tabulated conflicts. xNY.io - Bank.org must disclose no kleptocracy associations at NYCCoin, STX or with FTX assets trading now under BitLicense regulation. We are not exactly sure how FTX is making money after the original fraud. I am sure FTX or STX trading would not be involved against the best interest of New Yorkers. Attorney General James, looking at the numbers ... The D&O excess is nearly 10x the estimated 1B figures estimated by FTX's current CEO. This is something xNY.io - Bank.org cannot cover under our D&O, so I hope it is not something NY-DFS is calculating as ongoing FTX fraud. As you know, the STX racket fraud question is ongoing. xNY.io - Bank.org reserves all rights. Happy Veterans Day. Thank you, Gunnar Gunnar Larson xNY.io - Bank.org 917-580-8053 --------- Forwarded message --------- From: Gunnar Larson <g(a)xny.io> Date: Fri, Nov 10, 2023, 10:55 AM Subject: FTX DR 5-105 Records Request To: <ftxquestions(a)kroll.com> Cc: Reader, Shaun <sreader(a)curtis.com>, <FRC(a)fincen.gov> Hello there: New York is one of the few states that require lawyers to check for conflicts of interest before accepting any new engagement. In 1996, NY adopted DR 5-105(E), a new paragraph of New York’s main rule governing conflicts of interest. DR 5-105(E) contains three sentences (which I set off here in bullets to make the rule easier to read): • “A law firm shall keep records of prior engagements, which records shall be made at or near the time of such engagements and shall have a policy implementing a system by which proposed engagements are checked against current and previous engagements, so as to render effective assistance to lawyers within the firm in complying with DR 5-105(D).” • “Failure to keep records or to have a policy which complies with this subdivision, whether or not a violation of DR 5-105(D) occurs, shall be a violation by the firm.” • “In cases in which a violation of this subdivision by the firm is a substantial factor in causing a violation of DR 5-105(D) by a lawyer, the firm, as well as the individual lawyer, shall also be responsible for the violation of DR 5 105(D).” The rule thus embodies two separate obligations. Law firms must: 1. Make and keep contemporaneous records of prior engagements at or near the time of such engagements 2. Have a policy implementing a system for checking proposed engagements against current and previous engagements. xNY.io - Bank.org would like to check for conflicts of our interest concerning FTX's asset sale and New York State's regulator who is overseeing Trusts holding FTX assets. Participants, the Trust or the Sponsor may be required to comply with FinCEN regulations, including those that would mandate the Authorized Participant to implement anti-money laundering programs, make certain reports to FinCEN and maintain certain records. Similarly, the activities of an Authorized Participant, the Trust or the Sponsor may require it to be licensed as a money transmitter or as a digital asset business, such as under the New York State Department of Financial Services’ BitLicense regulation. Would you please be able to send us a confirmation of your DR 5-105 records on FTX clearing xNY.io - Bank.org of any associated conflicts to FTX. Thank you, Gunnar Gunnar Larson xNY.io - Bank.org 917-580-8053

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Fwd: FOIL #2022-090560 Appeal
by Gunnar Larson 11 Nov '23

11 Nov '23

---------- Forwarded message --------- From: Gunnar Larson <g(a)xny.io> Date: Fri, Nov 10, 2023, 4:52 PM Subject: Re: FOIL #2022-090560 Appeal To: Tomczak, Christine (DFS) <christine.tomczak(a)dfs.ny.gov> Cc: Harris, Adrienne A (DFS) <Adrienne.Harris(a)dfs.ny.gov>, < letitia.james(a)ag.ny.gov>, Reader, Shaun <sreader(a)curtis.com>, Dean, Peter C (DFS) <Peter.Dean(a)dfs.ny.gov> Ms. Tomczak: Hope you are well. Can you please update xNY.io - Bank.org on our Apple Card records request? Ms. Tomczak, this matter has been going on over 600 days. It involves a D&O condition of the past Superintendent. We have a similar problem concerning another D&O matter that Ms. James and Ms. Harris are aware of. Mitigating all risk, we do not want the Apple Card scenario to further complicate excess D&O matters at xNY.io - Bank.org. As I understand it, the Eastern District of New York has a deferred agreement with Apple Card that NY-DFS' character and fitness guidelines require xNY.io - Bank.org to respect. We are not exactly sure on the deferred agreement's expiration date, it may have been within the last two weeks. If the date has expired, xNY.io - Bank.org would need NY- DFS to further facilitate a copy of correspondence with the Eastern District of New York, given the nature of federal and international law expressed by the deferred agreement (fun fact, I was a founding producer of the UN's Audio Visual Library of International Law). Does NY-DFS have an update on the Apple Card concern? If not, can you please provide xNY.io - Bank.org confirmation that NY-DFS has communicated with the Eastern District of New York and that we are not party to the deferred agreement's scope of influence by EOD, Monday November 13, 2023? Have a great weekend and Happy Veterans Day. Thank you, Gunnar Gunnar Larson xNY.io - Bank.org 917-580-8053 On Mon, Oct 16, 2023, 12:06 PM Tomczak, Christine (DFS) < christine.tomczak(a)dfs.ny.gov> wrote: > Hello Mr. Larson, > > > > I will check into this. Sorry for the delay. > > > > Christine > > > > Christine M. Tomczak > > Assistant Counsel > > > > New York State Department of Financial Services > > 1 State Street, New York, New York 10004 > > > > > > > > > > *From:* Gunnar Larson <g(a)xny.io> > *Sent:* Monday, October 16, 2023 9:35 AM > *To:* Tomczak, Christine (DFS) <christine.tomczak(a)dfs.ny.gov> > *Subject:* Re: FOIL #2022-090560 Appeal > > > > *ATTENTION: This email came from an external source. Do not open > attachments or click on links from unknown senders or unexpected emails.* > > > > Dear Ms. Tomczak: > > > > Hope this email finds you well. > > > > Concerning the Apple Card records mentioned in your letter dated July 25, > 2023, today xNY.io - Bank.org kindly seeks an update on this > important matter. > > > > Please let us know when the time is convenient for you. > > > > Sending you the best wishes. > > > > Thank you very much, > > > > Gunnar > > > > Gunnar Larson > > xNY.io - Bank.org > > 917-580-8053 > > > > ue, Jul 25, 2023, 2:54 PM Tomczak, Christine (DFS) < > christine.tomczak(a)dfs.ny.gov> wrote: > > Dear Mr. Larson, > > > > See attached letter. > > > > Best regards, > > > > Christine Tomczak > > > > > > Christine M. Tomczak > > Assistant Counsel > > > > New York State Department of Financial Services > > 1 State Street, New York, New York 10004 > > > > > > > >

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THREE (GOP-INSPIRED) STEPS TO REBUILD TRUST IN ELECTIONS NOVEMBER 9, 2023 GEORGIA SECRETARY OF STATE BRAD RAFFENSPERGER AND OTHER REPUBLICAN LEADERS LAY OUT WHAT NEEDS TO HAPPEN BEFORE THE 2024 ELECTION
by Gunnar Larson 11 Nov '23

11 Nov '23

THREE (GOP-INSPIRED) STEPS TO REBUILD TRUST IN ELECTIONS NOVEMBER 9, 2023 GEORGIA SECRETARY OF STATE BRAD RAFFENSPERGER AND OTHER REPUBLICAN LEADERS LAY OUT WHAT NEEDS TO HAPPEN BEFORE THE 2024 ELECTION Four adults sit on a stage and talk under a screen that reads Only 40% of Republicans said they were very or somewhat confident in the accuracy of U.S. elections, according to a new Gallup poll, down from a high of 90% in 2006. A coalition of Republican state election officials is urging states to act now to rebuild at least some trust before the 2024 presidential election. “Our democracy cannot hold if its citizens do not trust that elections accurately reflect the will of the people,” Georgia Secretary of State Brad Raffensperger, who oversaw the state’s tightly contested 2020 election, said in a joint statement with Idaho Secretary of State Phil McGrane, Kansas Secretary of State Scott Schwab, and Utah Lt. Gov. Deidre Henderson. https://washingtondc.jhu.edu/news/three-gop-inspired-steps-to-rebuild-trust…

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