March 2024 - cypherpunks - lists.cpunks.org

Trump Ally Jeffrey Clark Faces Disbarment In DC Hearing
by Gunnar Larson 26 Mar '24

26 Mar '24

Trump Ally Jeffrey Clark Faces Disbarment In DC Hearing <https://www.law360.com/insurance/articles/1816365?nl_pk=59612751-8689-4b1e-…> By Alison Knezevich In a case one expert called "the single most significant" in the history of the Washington, D.C., bar, a former U.S. Department of Justice official is set to go before an ethics panel this week to face charges over his role in former President Donald Trump's efforts to undermine the 2020 election. Read full article » <https://www.law360.com/insurance/articles/1816365?nl_pk=59612751-8689-4b1e-…> | Save to favorites » <https://www.law360.com/insurance/articles/1816365?nl_pk=59612751-8689-4b1e-…>

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Fwd: [OpenRecords] Request FOIL-2023-056-15960 Acknowledged NYPD body cam footage, for NYCCoin Touting.)
by Gunnar Larson 26 Mar '24

26 Mar '24

---------- Forwarded message --------- From: FOIL APPEALS <FOILAppeals(a)nypd.org> Date: Tue, Mar 26, 2024, 7:33 AM Subject: RE: [OpenRecords] Request FOIL-2023-056-15960 Acknowledged NYPD body cam footage, for NYCCoin Touting.) To: Gunnar Larson <g(a)xny.io> The records responsive to your request are specifically exempted by state or federal statute [§87(2)(a)] in that they have been SEALED pursuant to New York Criminal Procedure Law §160.55. Please provide a notarized waiver (see attached). Respectfully, [image: Signature New] *CONFIDENTIALITY NOTICE: This email and any attachments may contain confidential and privileged information for the use of the designated recipient(s) named above. If you are not the intended recipient, you are hereby notified that you have received this communication in error and that any review, use or disclosure of it or its contents is prohibited and may violate laws including the Electronic Communications Privacy Act. If you are not the intended recipient, please contact the sender and destroy all copies of this communication. Please treat this and all other communications from the New York City Police Department as** LAW ENFORCEMENT SENSITIVE / FOR OFFICIAL USE ONLY.* *From:* Gunnar Larson <g(a)xny.io> *Sent:* Tuesday, March 26, 2024 2:49 AM *To:* FOIL APPEALS <FOILAppeals(a)nypd.org> *Cc:* letitia.james(a)ag.ny.gov; Harris, Adrienne A (DFS) < Adrienne.Harris(a)dfs.ny.gov>; cypherpunks(a)cpunks.org *Subject:* Fwd: [OpenRecords] Request FOIL-2023-056-15960 Acknowledged NYPD body cam footage, for NYCCoin Touting.) You don't often get email from g(a)xny.io. Learn why this is important <https://aka.ms/LearnAboutSenderIdentification> Hello: This body camera footage is being requested by the individual who is subject to the footage. As such, I am appealing this decision. Gunnar -- Gunnar Larson xNY.io - Bank.org 917-580-8053 ---------- Forwarded message --------- From: <donotreply(a)records.nyc.gov> Date: Mon, Mar 25, 2024, 9:42 AM Subject: [OpenRecords] Request FOIL-2023-056-15960 Closed To: <g(a)xny.io> The New York City Police Department (NYPD) has *closed* your FOIL request FOIL-2023-056-15960 <https://a860-openrecords.nyc.gov/request/view/FOIL-2023-056-15960> for the following reasons: - In regard to the document(s) which you requested, I must deny access to these records on the basis of Public Officers Law Section 87(2)(b) as such information, if disclosed, would constitute an unwarranted invasion of personal privacy. - Your request under the Freedom of Information Law (FOIL) is denied because the records you requested are exempt from disclosure under FOIL because they are specifically exempted from disclosure by state or federal statute. Public Officers Law sec. 87(2)(a). - Your request under the Freedom of Information Law (FOIL) is denied on the ground that the records you requested are exempt from disclosure under FOIL because disclosure would constitute an unwarranted invasion of personal privacy. Public Officers Law secs. 87(2)(b) and 89(2)(b). You may appeal the decision to deny access to material that was redacted in part or withheld in entirety by contacting the agency's FOIL Appeals Officer: foilappeals(a)nypd.org <foilappeals(a)nypd.org?subject=FOIL-2023-056-15960%20-%20Appeal> within 30 days. On Fri, Jan 12, 2024, 2:59 AM Gunnar Larson <g(a)xny.io> wrote: Dear Honorable Senator Gillibrand: My name is Gunnar Larson and I am a co-founder at xNY.io - Bank.org. Today I contact your esteemed office seeking assistance with retrieving the NYPD body camera footage mentioned below. The FOIL request was filed with the NYPD on July 14, 2023. The NYPD responded on July 16, 2023, noting a potential delivery date of the body camera footage by end of November 2023. As of today, January 12, 2024 xNY.io - Bank.org has not heard from the NYPD on receiving the body camera footage. Senator Gillibrand, I am concerned delay in receiving this body camera footage may disrespect your #MeToo zero tolerance policy. Humbly, the FBI should be able to confirm with your office if this is a "Don't Ask, Don't Tell" matter. Ultimately, I am concerned this matter should not impact the pure interests of your Lummis-Gillibrand Responsible Financial Innovation Act. The FBI should be able to be honest with your office concerning your Bloomberg Crypto Summit interview with Senator Lummis on the Responsible Financial Innovation Act. It is my understanding that the NYPD body camera footage could have been staged politically, given xNY's approach to NYCCoin. Senator Gillibrand, your office could offer anyone the opportunity to engage the new SDNY program here to protect honest integrity of the NYPD: https://www.wsj.com/articles/u-s-attorney-in-manhattan-launches-program-to-… . Thank you Senator Gillibrand. Sending you the very best 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 ---------- Forwarded message --------- From: *Gunnar Larson* <g(a)xny.io> Date: Wed, Jan 10, 2024, 5:36 AM Subject: Re: [OpenRecords] Request FOIL-2023-056-15960 Acknowledged NYPD body cam footage, for NYCCoin Touting.) To: IABCMDCNTR <IABCMDCNTR(a)nypd.org> Cc: <cypherpunks(a)cpunks.org>, ethics.sm.records <records(a)ethics.ny.gov>, < ethel(a)jcrope.ny.gov>, <letitia.james(a)ag.ny.gov>, Harris, Adrienne A (DFS) < Adrienne.Harris(a)dfs.ny.gov>, <PressOffice(a)cityhall.nyc.gov>, Reader, Shaun < sreader(a)curtis.com>, <district3(a)council.nyc.gov> Good morning NYPD: Thank you for your Jul 16, 2023 response. xNY.io - Bank.org did not hear from you on November 29, 2023 as promised. Given the emerging situation in USA cryptocurrency markets, we are going to need to follow up with the NYPD every 10 days until we receive the NYCCoin touting body camera footage. Can you please update xNY.io - Bank.org on the status of the footage? We have received various replies from the City of New York on Mayor Adams' 'first checks in Bitcoin' mentioned here: https://www.nyc.gov/office-of-the-mayor/news/041-22/mayor-adams-receive-fir… . Have a good day. Thank you, 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 Mon, Jan 1, 2024, 6:41 AM Gunnar Larson <g(a)xny.io> wrote: Good morning: Happy New Year 2024 to you. Can we please have an update on this matter? Thank you, 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 Fri, Dec 15, 2023, 3:51 PM Gunnar Larson <g(a)xny.io> wrote: Hello: Thank you for your Jul 16, 2023 response. xNY.io - Bank.org did not hear from you on November 29, 2023 as promised. Can xNY.io - Bank.org please receive the NYPD body cam footage for NYCCoin Touting by December 31, 2023? Warm regards, Gunnar Gunnar Larson -- 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 Wed, Dec 6, 2023, 11:11 AM Gunnar Larson <g(a)xny.io> wrote: Hello: Any updates on the body camera footage mentioned below? Gunnar Gunnar Larson xNY.io - Bank.org 917-580-8093 On Thu, Nov 16, 2023, 7:10 AM Gunnar Larson <g(a)xny.io> wrote: Dear Madam or Sir: I am just confirming that the NYCCoin body camera footage is still on track for November 29, 2023 delivery. Can you confirm as such please? The matter was recorded late March 2023. And xNY.io - Bank.org must close our EOY-23 books. Any further delay of the body camera footage could be a challenge to N.Y. Executive Law, Article 15 Human Rights Law, § 296. Unlawful discriminatory practices: 14. ... whether or not accompanied by the person for whom the dog is being trained. 16. It shall be an unlawful discriminatory practice, unless specifically required or permitted by statute, for any person, agency, bureau, corporation or association, including the state and any political subdivision thereof, to make any inquiry about, whether in any form of application or otherwise, or to act upon adversely to the individual involved, any arrest or criminal accusation of such individual not then pending against that individual which was followed by a termination of that criminal action or proceeding in favor of such individual, as defined in subdivision two of section 160.50 of the criminal procedure law, or by an order adjourning the criminal action in contemplation of dismissal, pursuant to section 170.55, 170.56, 210.46, 210.47, or 215.10 of the criminal procedure law, or by a youthful offender adjudication, as defined in subdivision one of section 720.35 of the criminal procedure law, or by a conviction for a violation sealed pursuant to section 160.55 of the criminal procedure law or by a conviction which is sealed pursuant to section 160.59 or 160.58 of the criminal procedure law, in connection with the licensing, housing, employment, including volunteer positions, or providing of credit or insurance to such individual; provided, further, that no person shall be required to divulge information pertaining to any arrest or criminal accusation of such individual not then pending against that individual which was followed by a termination of that criminal action or proceeding in favor of such individual, as defined in subdivision two of section 160.50 of the criminal procedure law, or by an order adjourning the criminal action in contemplation of dismissal, pursuant to section 170.55, 170.56, 210.46, 210.47, or 215.10 of the criminal procedure law, or by a youthful offender adjudication, as defined in subdivision one of section 720.35 of the criminal procedure law, or by a conviction for a violation sealed pursuant to section 160.55 of the criminal procedure law, or by a conviction which is sealed pursuant to section 160.58 or 160.59 of the criminal procedure law. An individual required or requested to provide information in violation of this subdivision may respond as if the arrest, criminal accusation, or disposition of such arrest or criminal accusation did not occur. The provisions of this subdivision shall not apply to the licensing activities of governmental bodies in relation to the regulation of guns, firearms and other deadly weapons or in relation to an application for employment as a police officer or peace officer as those terms are defined in subdivisions thirty-three and thirty-four of section 1.20 of the criminal procedure law; provided further that the provisions of this subdivision shall not apply to an application for employment or membership in any law enforcement agency with respect to any arrest or criminal accusation which was followed by a youthful offender adjudication, as defined in subdivision one of section 720.35 of the criminal procedure law, or by a conviction for a violation sealed pursuant to section 160.55 of the criminal procedure law, or by a conviction which is sealed pursuant to section 160.58 or 160.59 of the criminal procedure law. For purposes of this subdivision, an action which has been adjourned in contemplation of dismissal, pursuant to section 170.55 or 170.56, 210.46, 210.47 or 215.10 of the criminal procedure law, shall not be considered a pending action, unless the order to adjourn in contemplation of dismissal is revoked and the case is restored to the calendar for further prosecution. Thank you, Gunnar Gunnar Larson xNY.io - Bank.org 917-580-8053 n, Jul 16, 2023, 11:03 AM IABCMDCNTR <IABCMDCNTR(a)nypd.org> wrote: Mr. Larson, The FOIL request you requested was acknowledged and a response will be on or about Wednesday, November 29, 2023. They will follow-up with your request. If the request is denied, and you would like to file a complaint, we will assist you. Have a good day. *COMMAND CENTER, INTERNAL AFFAIRS BUREAU* This e-mail message and any attachment(s) is intended only for the person and/or entity to which it is addressed and may contain CONFIDENTIAL or PRIVILEGED material. Any unauthorized review, use, disclosure or distribution is strictly prohibited and may violate applicable laws including the Electronic Communications Privacy Act. If you are not the intended recipient, please contact the sender by reply e-mail and delete/destroy all copies of the original message. If you are the intended recipient but do not wish to receive communications through this medium, please so advise the sender immediately. Please treat this and all other communications from the New York City Police Department as LAW ENFORCEMENT SENSITIVE / FOR OFFICIAL USE ONLY. NO REPORT OR SEGMENT THEREOF MAY BE RELEASED TO ANY MEDIA SOURCES. ------------------------------ *From:* Gunnar Larson <g(a)xny.io> *Sent:* Sunday, July 16, 2023 10:56 AM *To:* FDSHelpDesk(a)ethics.ny.gov <FDSHelpDesk(a)ethics.ny.gov>; ethel(a)jcrope.ny.gov <ethel(a)jcrope.ny.gov>; IABCMDCNTR <IABCMDCNTR(a)nypd.org> *Cc:* letitia.james(a)ag.ny.gov <letitia.james(a)ag.ny.gov>; cypherpunks(a)cpunks.org <cypherpunks(a)cpunks.org>; Harris, Adrienne A (DFS) < Adrienne.Harris(a)dfs.ny.gov> *Subject:* Fwd: [OpenRecords] Request FOIL-2023-056-15960 Acknowledged *CAUTION! EXTERNAL SENDER* *STOP WHEN UNSURE.* Never click on links or open attachments if sender is unknown, and never provide user ID or password. *Suspicious?* Please report to this email address: reportphishing(a)nypd.org Dear New York Ethics Team: I am concerned that the FOIL below is subject to obstruction of justice. The FOIL request is for access to NYPD body cam footage, for NYCCoin Touting. Ethics Team, I am concerned that the Chief of your office is also the Chief of the City Mayor's office. The body cam footage should have an agreeable time for delivery. I am concerned that the Mayor is retaliating against NYCoin and the NYPD may be aware of this. The video would or would not delineate any form of unnecessary force. The NYPD may be aware of this. Obviously, xNY is very protective of digital asset innovation. Ethics is a serious matter and the body cam footage would be helpful concerning NYCCoin. Sincerely yours, Gunnar Gunnar Larson xNY.io - Bank.org 917-580-8053 ---------- Forwarded message --------- From: <donotreply(a)records.nyc.gov> Date: Fri, Jul 14, 2023, 12:25 PM Subject: [OpenRecords] Request FOIL-2023-056-15960 Acknowledged To: <g(a)xny.io> The New York City Police Department (NYPD) has *acknowledged* your FOIL request FOIL-2023-056-15960 <https://a860-openrecords.nyc.gov/request/view/FOIL-2023-056-15960>. You can expect a response on or about Wednesday, November 29, 2023. Additional Information: Your request has been assigned to PAA Quagliano (646-610-5296) Please visit FOIL-2023-056-15960 <https://a860-openrecords.nyc.gov/request/view/FOIL-2023-056-15960> to view additional information and take any necessary action.

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Investment Firm Slips Plan Members' Self-Dealing 401(k) Suit
by Gunnar Larson 26 Mar '24

26 Mar '24

Investment Firm Slips Plan Members' Self-Dealing 401(k) Suit <https://www.law360.com/newyork/articles/1817338?nl_pk=ac5a3855-e47c-4403-be…> By Emmy Freedman A New York federal judge on Monday threw out a lawsuit retirement plan participants lodged against investment firm AllianceBernstein accusing it of steering retirees' savings into its own poorly performing investments, saying there's no evidence the company was benefiting from these alleged actions. Opinion attached | Read full article » <https://www.law360.com/newyork/articles/1817338?nl_pk=ac5a3855-e47c-4403-be…> | Save to favorites » <https://www.law360.com/newyork/articles/1817338?nl_pk=ac5a3855-e47c-4403-be…>

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Bloomberg Asks To Toss Ex-Gov. Huckabee's AI Class Action
by Gunnar Larson 26 Mar '24

26 Mar '24

Bloomberg Asks To Toss Ex-Gov. Huckabee's AI Class Action <https://www.law360.com/newyork/articles/1816921?nl_pk=ac5a3855-e47c-4403-be…> By Ivan Moreno Media company Bloomberg has asked a Manhattan federal judge to dismiss it from a proposed class action led by former Arkansas Gov. Mike Huckabee, arguing that the plaintiffs' complaint lacks specifics detailing how their e-books' copyrights were allegedly infringed to train Bloomberg's large language model. Memorandum attached | Read full article » <https://www.law360.com/newyork/articles/1816921?nl_pk=ac5a3855-e47c-4403-be…> | Save to favorites » <https://www.law360.com/newyork/articles/1816921?nl_pk=ac5a3855-e47c-4403-be…>

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SEC Says Justices Should Skip Musk's Gag-Order Grievance
by Gunnar Larson 26 Mar '24

26 Mar '24

SEC Says Justices Should Skip Musk's Gag-Order Grievance <https://www.law360.com/newyork/articles/1817194?nl_pk=ac5a3855-e47c-4403-be…> By Jessica Corso The U.S. Securities and Exchange Commission is asking the U.S. Supreme Court to pass on Elon Musk's complaint that an agency-imposed gag order violates his free speech rights, arguing the Tesla CEO entered the agreement willingly and has presented no legal justification for backing out. Brief attached | Read full article » <https://www.law360.com/newyork/articles/1817194?nl_pk=ac5a3855-e47c-4403-be…> | Save to favorites » <https://www.law360.com/newyork/articles/1817194?nl_pk=ac5a3855-e47c-4403-be…>

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FTX Reaches Deals For $884M In Ch. 11 AI Biz Stock Sales
by Gunnar Larson 26 Mar '24

26 Mar '24

FTX Reaches Deals For $884M In Ch. 11 AI Biz Stock Sales <https://www.law360.com/newyork/articles/1817421?nl_pk=ac5a3855-e47c-4403-be…> By Vince Sullivan Bankrupt cryptocurrency exchange FTX Trading Ltd. informed a Delaware court that it has reached agreements with two dozen purchasers for sales of the debtor's holdings in artificial intelligence company Anthropic PBC worth $884.1 million. Notice attached | Read full article » <https://www.law360.com/newyork/articles/1817421?nl_pk=ac5a3855-e47c-4403-be…> | Save to favorites » <https://www.law360.com/newyork/articles/1817421?nl_pk=ac5a3855-e47c-4403-be…>

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Ripple's Legal Chief Says SEC Wants $2B In Remedies
by Gunnar Larson 26 Mar '24

26 Mar '24

Ripple's Legal Chief Says SEC Wants $2B In Remedies <https://www.law360.com/newyork/articles/1817415?nl_pk=ac5a3855-e47c-4403-be…> By Aislinn Keely The CEO and legal head of blockchain firm Ripple Labs said Monday that the U.S. Securities and Exchange Commission plans to seek $2 billion in fines and penalties over the firm's failure to register institutional sales of its XRP token, but the firm plans to strike back at the high dollar amount. Read full article » <https://www.law360.com/newyork/articles/1817415?nl_pk=ac5a3855-e47c-4403-be…> | Save to favorites » <https://www.law360.com/newyork/articles/1817415?nl_pk=ac5a3855-e47c-4403-be…>

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Terraform Failure In Crypto Crash Wasn't Fraud, Jury Told
by Gunnar Larson 26 Mar '24

26 Mar '24

Terraform Failure In Crypto Crash Wasn't Fraud, Jury Told <https://www.law360.com/newyork/articles/1817154?nl_pk=ac5a3855-e47c-4403-be…> By Pete Brush Counsel for Terraform Labs creator Do Kwon told a Manhattan federal jury Monday that Kwon believed in his technology and told the truth, pushing back against claims that he lied about the stability and business prospects of his bankrupt cryptocurrency startup. Read full article » <https://www.law360.com/newyork/articles/1817154?nl_pk=ac5a3855-e47c-4403-be…> | Save to favorites » <https://www.law360.com/newyork/articles/1817154?nl_pk=ac5a3855-e47c-4403-be…>

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FTX Clawbacks Unlikely To Help Bankman-Fried At Sentencing
by Gunnar Larson 26 Mar '24

26 Mar '24

FTX Clawbacks Unlikely To Help Bankman-Fried At Sentencing <https://www.law360.com/newyork/articles/1816360?nl_pk=ac5a3855-e47c-4403-be…> By Rachel Scharf FTX founder Sam Bankman-Fried probably won't find much success in arguing for a shorter prison term based on the billions of dollars recovered by the shuttered crypto exchange's bankruptcy estate, experts told Law360 ahead of this week's much-anticipated sentencing hearing. 3 documents attached | Read full article » <https://www.law360.com/newyork/articles/1816360?nl_pk=ac5a3855-e47c-4403-be…> | Save to favorites » <https://www.law360.com/newyork/articles/1816360?nl_pk=ac5a3855-e47c-4403-be…>

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Wall Street Law Firm Sullivan & Cromwell Gets Sued Over Allegations It Aided and Abetted the FTX Crypto Fraud
by Gunnar Larson 26 Mar '24

26 Mar '24

https://wallstreetonparade.com/2024/02/wall-street-law-firm-sullivan-cromwe… Wall Street Law Firm Sullivan & Cromwell Gets Sued Over Allegations It Aided and Abetted the FTX Crypto Fraud By Pam Martens and Russ Martens: February 21, 2024 ~ Ryne Miller, Former Sullivan & Cromwell Partner; Now General Counsel of FTX.US Ryne Miller, Former Sullivan & Cromwell Partner, Became General Counsel of FTX.US The 144-year old Wall Street go-to law firm, Sullivan & Cromwell, may be getting rich on the FTX bankruptcy legal fees, but it’s also doing a helluva job destroying its reputation as a prudent law firm. Last Friday, a federal lawsuit was filed against the law firm alleging civil conspiracy, aiding and abetting fraud, aiding and abetting breach of fiduciary duty, and violations of civil federal racketeering law in regard to its work for the collapsed crypto exchange, FTX, which looted customer funds to the tune of billions of dollars. We’ll get to the stunning allegations in the lawsuit in a moment, but first some necessary background. Last year, Wall Street On Parade wrote more than 20 articles documenting the labyrinthine and deeply conflicted ways that Sullivan & Cromwell had enmeshed itself in the FTX crypto exchange before the house of cards collapsed. (See a small sampling of our work in “Related Articles” at the end of this article.) One of Sullivan & Cromwell’s law partners, Ryne Miller, moved to FTX.US and became its General Counsel. Another former Sullivan & Cromwell lawyer, Tim Wilson, became General Counsel for FTX Ventures, the venture capital arm of FTX. Sullivan & Cromwell had previously represented the kingpin of the fraud, Sam Bankman-Fried, who was convicted in November 2023 on seven counts of fraud and conspiracy. The law firm had also previously represented the Head of Engineering at FTX, Nishad Singh, who has pled guilty to fraud charges. According to Sullivan & Cromwell’s own bankruptcy court declaration, it had been involved in more than 20 legal engagements for FTX before it filed for bankruptcy on November 11, 2022. According to the declaration, the law firm’s legal work began 15 months prior to the collapse of the firm. Notwithstanding these conflicts, Sullivan & Cromwell steamrolled its way into becoming lead counsel of the FTX bankruptcy and then argued against allowing the U.S. Department of Justice’s U.S. Trustee to appoint an independent examiner – a legally mandated position for bankruptcy cases exceeding $5 million. Equally troubling, the FTX bankruptcy judge, John Dorsey, of the U.S. Bankruptcy Court for the District of Delaware, bought into Sullivan & Cromwell’s arguments and declined to allow the U.S. Trustee to appoint an independent examiner. The Third Circuit Court of Appeals overruled the Judge last month. Sullivan & Cromwell’s conflicts with FTX and its demand to be appointed lead counsel in the bankruptcy were so over the top that in January of 2023 four sitting U.S. Senators (Elizabeth Warren (D-MA), John Hickenlooper (D-CO), Thom Tillis (R-NC) and Cynthia Lummis (R-WY)) sent a letter to Judge Dorsey. Senator Hickenlooper Tweeted a link to the letter with the comment: “Get this: FTX’s legal advisors *pre-collapse* want to be appointed to oversee investigations INTO the collapse.” The Senators’ letter included this blunt assessment of Sullivan & Cromwell’s conflicted role: “To name just one challenge: will the firm’s lawyers be able to effectively investigate their current and former partners who were central in FTX’s conduct? Additionally, given their longstanding legal work for FTX, they may well bear a measure of responsibility for the damage wrecked on the company’s victims. Put bluntly, the firm is simply not in a position to uncover the information needed to ensure confidence in any investigation or findings.” That assessment was clearly an understatement according to the federal lawsuit filed last Friday against Sullivan & Cromwell by the Moskowitz Law Firm on behalf of 16 customers of the FTX crypto platform. Among the allegations in the lawsuit are the following: “…from November 2022 to mid-January 2024, S&C’s income from matters just related to FTX has surged, exceeding $180 million — or 10% of the total revenue the 900-lawyer firm publicly stated it collected in all of 2022 — with paralegals billing $595/hr. and partners billing up to $2,165/hr.” “S&C attorneys served as the primary legal services providers for the RICO enterprise, assisting in the structuring of the enterprise operations.” “When the FTX fraud was revealed in November 2022, Mr. Miller and S&C moved to consolidate power over the FTX Group without delay, quickly ousting SBF [Sam Bankman-Fried] and his lieutenants and appointing in their stead hand-picked successors to navigate FTX through the bankruptcy process. S&C’s post-collapse maneuvering seems particularly calculated, given that S&C was well positioned to see the collapse coming, via knowledge gleaned from prior engagements.” “Mr. Miller and S&C moved to divert the $250 million FTX Guaranty Fund from LedgerX, one of the few entities S&C specifically chose not to include among the over 100 FTX entities it forced into bankruptcy, in order to secure receipt of a multi-million-dollar retainer to S&C before the FTX Group filed for bankruptcy, presumably to improve the Firm’s revenues throughout the extensive FTX bankruptcy process. With S&C’s assistance, SBF and FTX caused billions in losses to Plaintiffs through at least two separate schemes, both of which contributed to the downfall of the FTX Group.” “S&C was one of FTX US’s principal outside law firms and its conduct mirrors that of the other MDL [Multi-District Litigation] Defendants. This conduct violates numerous laws, including laws related to the sale of unregistered securities, consumer protection, professional malpractice, aiding and abetting fraud, negligence, breach of fiduciary duties, and violations of the Racketeer Influenced and Corrupt Organizations Act (‘RICO’). S&C provided services to the FTX Group entities that went well beyond those a law firm should and ordinarily provides. As the evidence will reveal, S&C lawyers were eager to craft not only creative, but misleading strategies that furthered FTX’s misconduct. As several members of Congress recently remarked, these and other services are ‘often central to major financial scandals, given [legal counsel’s] role in drafting financial agreements, risk management compliance practices, and corporate controls.’ S&C is no different, and the services and strategies it provided to the FTX Group were important to the eventual FTX Group’s fraud.” The case is Edwin Garrison, et al., v. Sullivan & Cromwell LLP. It has been filed in the U.S. District Court for the Southern District of Florida. The case number is 1:24-cv-20630. It is part of Multi-District Litigation (MDL) and was stayed by the Judge in an order yesterday while claims proceed in a related case, In Re: FTX Cryptocurrency Exchange Collapse Litigation. Related Articles: No One Trusts the FTX Bankruptcy Case: News Outlets Intervene; Justice Department Trustee Demands Independent Examiner; SEC Orders Disclosures A Sam Bankman-Fried Company Loaned or Invested More than $1 Billion in Clients of its Law Firm, Sullivan & Cromwell Sullivan & Cromwell, FTX Lead Counsel in Bankruptcy, Says It Has No Adverse Relationships, Despite Representing Four of FTX’s Crypto Exchange Competitors Bombshell Emails Raise Questions about What Sullivan & Cromwell Knew about Fraud at Sam Bankman-Fried’s Crypto Firms

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