August 2024 - cypherpunks - lists.cpunks.org

Bank, Fintech Groups Say FDIC Should Ice 'Hot Money' Plan
by Gunnar Larson 25 Aug '24

25 Aug '24

Bank, Fintech Groups Say FDIC Should Ice 'Hot Money' Plan <https://www.law360.com/banking/articles/1872405?nl_pk=feb6bbba-7878-4d39-be…> By Jon Hill A broad coalition of bank and fintech trade groups has called for the Federal Deposit Insurance Corp. to back off from a recently proposed revamp of its rules on "hot money," or brokered deposits, arguing the plan was put forward "without sufficient or transparent data or robust policy rationale." Letter attached | Read full article » <https://www.law360.com/banking/articles/1872405?nl_pk=feb6bbba-7878-4d39-be…> | Save to favorites » <https://www.law360.com/banking/articles/1872405?nl_pk=feb6bbba-7878-4d39-be…>

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10th Circ. Pauses Debt Relief Appeal After 8th Circ. Ruling
by Gunnar Larson 25 Aug '24

25 Aug '24

10th Circ. Pauses Debt Relief Appeal After 8th Circ. Ruling <https://www.law360.com/banking/articles/1872796?nl_pk=feb6bbba-7878-4d39-be…> By Rae Ann Varona The Tenth Circuit on Thursday paused several states' appeal challenging a Kansas federal judge's injunction that partially barred the Biden administration's latest student debt relief plan, citing a broader injunction the Eighth Circuit issued earlier this month. Order attached | Read full article » <https://www.law360.com/banking/articles/1872796?nl_pk=feb6bbba-7878-4d39-be…> | Save to favorites » <https://www.law360.com/banking/articles/1872796?nl_pk=feb6bbba-7878-4d39-be…>

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[project][notes][crazy] Digital Sewing of an EEG Cap
by Undescribed Horrific Abuse, One Victim & Survivor of Many 25 Aug '24

25 Aug '24

I had downtime at a library and looked into this a little. - Even if you don’t have a cnc sewing machine, you can do the cutting with a die cutter device like a cricut and make the sewing very easy and clear. - I websearched sewing a cap, and the example I found used four panels sewn flat with curved proportions such that they fit a head when expanded. The fabric cuts are offset from the theoretical edges to leave room for sewing. The example used whole ellipse-like segments bonded at the edges. This made a spheroid-like final result, which was inverted once to hide the sewing, then the bottom inverted again into the top to make two layers. - You could calculate the proportions of these panels for an individual head via measurement or medical imagery. I started by assuming a mathematical spheroid with two unique dimensions. - I think that panels that cover a spheroid are elliptical shapes where the height equals the height of the spheroid (possible mistake, reconsider?), and the width of each is the circumference of the spheroid divided by the number of panels. It took me a while to realize this again. - Scratch code at https://www.kaggle.com/code/superjunk/notebookfdb0c5e39b uses matplotlib to draw a parametrically-designed sewing pattern for a spheroid. The larger curve is offset to cut. The curve inside it is to fold adjacent parts and sew. It looks as if you could actually do it with only one panel if desired, unsure. - ellipse width = circumference / panel count - ellipse height = height # i think this is a mistake and instead should be the vertical arclength - ellipse-like arclengths are calculated using a function called the “incomplete elliptic integral of the second kind” or E, where if a and b are the ellipse radii in either order, then between angle a1 and a2 it’s something like arclength = b(E(a2|1-(a/b)^2)-E(a1|1-(a/b)^2)) - I didn’t readily find an inverse for E, so finding angle ranges to tesselate to a specific resolution precisely would mean new numeric solutions, but the result looks reasonable if a circle of average radius (r = (a+b)/2) is used. - it looks like a die cutter can generally both cut fabric as well as mark a pattern on it by placing a pen rather than a knife in it. most of the time was spent slowly realizing that the panels are exact ellipses maybe it was cool to realize you could sew 3d shapes flat by breaking them into convex surfaces and calculating the bounds ! you could sew any shape by doing this and stuffing it. Parametrically creating the design lets one place things at precise points on the surface later.

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Crypto Took Down Another Federally-Insured Bank and Just Handed Its CEO a 24-Year Prison Sentence
by Gunnar Larson 23 Aug '24

23 Aug '24

https://wallstreetonparade.com/2024/08/crypto-took-down-another-federally-i… By Pam Martens and Russ Martens: August 23, 2024 ~ Shan Hanes, Former CEO of Heartland Tri-State Bank Last year, the staff of a federally-insured bank in Kansas, Heartland Tri-State Bank, wired out more than one-third of the amount the bank held in deposits to a crypto scam. Why did they do that? Because the CEO of the bank, Shan Hanes, told them to do it. Hanes had become one more crypto sucker seduced by the allure of a get-rich-quick scheme. On Monday, Hanes was sentenced in a case brought by the U.S. Department of Justice to 24 years in prison for embezzling $47.1 million (via the wire transfers shown in the graph above) from the bank he was in charge of protecting. The bank failed last July with the Federal Deposit Insurance Corporation (FDIC) stepping in to make depositors whole while the investors in the bank (shareholders) were wiped out. There’s an old saying on Wall Street: “Bulls make money, bears make money, pigs get slaughtered.” The premise is that if a person becomes too greedy (a “pig”), he or she loses the ability to make prudent judgment calls and gets slaughtered. Exactly one year before Heartland Tri-State Bank failed, Wall Street On Parade wrote about getting “pig butchered” – slang for getting scammed out of your money by crypto con artists. Unfortunately for the shareholders of Heartland Tri-State Bank, its prison-bound former CEO didn’t read our article. Prosecutors say he became the target of a pig-butchering crypto scam which led him into the embezzlement scheme at his bank. In addition to the federal charges on which Hanes was just sentenced, he also faces 29 state criminal charges, some of which relate to his looting the accounts of the local church and an investment club as part of his wiring binge to the crypto scam artists. A trial in that case is scheduled for October. What is most noteworthy about this small bank going bust is that the way it was brought down could be happening, at this very moment, at much larger banks anywhere in this country. The Office of Inspector General of the Federal Reserve released a 27-page investigative report, detailing how the scam was facilitated inside the bank. The investigators wrote: “The CEO’s wire requests were inconsistent with both Heartland’s prior and recently implemented wire transfer limits and appeared to be unusual given the bank’s agricultural lending business. The wire requests included the name and account numbers of a cryptocurrency platform. Three of the seven wire transfer requests processed before June 24 exceeded the applicable $5 million limit. These requests exceeded the $5 million applicable limit by $1.7 million to $5.3 million per sender. All three of the wires processed after the implementation of the wire policy on June 24 exceeded the new $3 million limit. Those wires exceeded the limit by $300,000 to $5 million per sender. Despite the atypical recipient and the dollar amounts of each transfer significantly departing from prior wire activity and established limits, Heartland’s chief financial officer (CFO) and other bank employees approved the wire transfers. We believe that had Heartland employees followed the bank’s policies, they would have not processed the wires that led to the bank’s failure.” Federal banking regulators and Congress are just as responsible as the acquiescing employees inside the bank for yet another bank failure related to crypto. The voluntary liquidation of Silvergate Bank last year and the failure of Signature Bank during last year’s spring bank runs were both tied to the banks’ involvement with the crypto industry. Numerous other major countries have outlawed crypto or placed heavy restrictions on it. In the U.S., however, we are allowing the crypto billionaires to place their fingers on the scale of our elections in November as the Republican candidate for President, Donald Trump, shills for the crypto billionaires at their convention last month and announced yesterday that he is starting his own crypto platform. This tolerance in the U.S. toward crypto as it brings down federally-insured banks and loots the life savings of thousands of Americans, comes despite 1,600 of the brightest scientific minds in technology signing a letter calling both crypto and blockchain a sham. The Federal Trade Commission announced in February that Americans reported $1.4 billion in losses to cryptocurrency scams in 2023.

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Ukrainian Man Hits Cyprus Companies For £1.2M Loan Debt
by Gunnar Larson 23 Aug '24

23 Aug '24

Ukrainian Man Hits Cyprus Companies For £1.2M Loan Debt <https://www.law360.co.uk/financial-services-uk/articles/1871114?nl_pk=a94fc…> By Ronan Barnard A Ukrainian man has sued two banks in a London court for allegedly defaulting on a £1 million ($1.3 million) loan. Read full article » <https://www.law360.co.uk/financial-services-uk/articles/1871114?nl_pk=a94fc…> | Save to favorites » <https://www.law360.co.uk/financial-services-uk/articles/1871114?nl_pk=a94fc…>

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Mike Lynch's Path From Tech Founder To DOJ Target
by Gunnar Larson 23 Aug '24

23 Aug '24

Mike Lynch's Path From Tech Founder To DOJ Target <https://www.law360.co.uk/financial-services-uk/articles/1872626?nl_pk=a94fc…> By Christopher Crosby Friends and colleagues paid tribute to Mike Lynch following his death in a yachting accident on Thursday, hailing the British tech entrepreneur for the decades he spent furthering the industry despite the legal troubles that threatened to overshadow his career. Read full article » <https://www.law360.co.uk/financial-services-uk/articles/1872626?nl_pk=a94fc…> | Save to favorites » <https://www.law360.co.uk/financial-services-uk/articles/1872626?nl_pk=a94fc…>

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Beloved By Everyone': Attys Recall Clifford Chance's Morvillo
by Gunnar Larson 23 Aug '24

23 Aug '24

Beloved By Everyone': Attys Recall Clifford Chance's Morvillo <https://www.law360.co.uk/financial-services-uk/articles/1871928?nl_pk=a94fc…> By Bonnie Eslinger Clifford Chance LLP partner Christopher Morvillo, who died this week after a luxury yacht he was on sank off the coast of Sicily, is being remembered not only as a lion of the legal community but also as an "extraordinary human being" and a "Renaissance man" who was devoted to his family. Read full article » <https://www.law360.co.uk/financial-services-uk/articles/1871928?nl_pk=a94fc…> | Save to favorites » <https://www.law360.co.uk/financial-services-uk/articles/1871928?nl_pk=a94fc…>

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Does Short-selling Discipline Earnings Manipulation? Disciplined Short Sellers Handbook (W/58 Highlights Attached)
by Gunnar Larson 23 Aug '24

23 Aug '24

Does Short-selling Discipline Earnings Manipulation? xNY.io - Bank.org recently collated international graduate scholar working notes coining the "Crypto Computer Crimes Manual <https://drive.google.com/file/d/11tbgHgDg8qagomO-NBffvIFpxXKmBC3g/view?usp=…>" as per best disclosure practices to illustrate various potential scenarios when market conditions are met and a Board of Directors potentially exploits blockchain technological software innovation with forecastable reckless consequences. The Disciplined Short Sellers Handbook serves as a Manual supplement ... Detailing the hypothesis that short-selling has a disciplining role vis-à-vis the managers forcing them to reduce earning manipulation. Across 33 countries, the Handbook documents a significantly negative relationship between lending supply and activism in the short sell market and earnings manipulation. Collectively, findings suggest that short selling provides an external governance mechanism to discipline managerial incentives. xNY.io highlights that the authors of the faculty and research study confirm the main hypotheses and provide evidence of a beneficial effect of the short-selling market on the corporate market. In other words, short-selling generates a disciplining effect similar to the effect produced by the contestability of the firm in the context of M&As. In this regard, short selling contributes not only to the information environment of the market but also to the contracting institutions of the real economy. Suggesting that in general the disciplining role of short-selling is the strongest for firms with weak internal governance or less transparent information environments. We share 58 highlights to the Handbook <https://drive.google.com/file/d/1aLcmN5c2PJiqHYR5dy8C8qMNVyclw8lu/view?usp=…> as a disclosure technique, foreshadowing xNY.io's disciplined approach to trading in the near term (subject to regulatory scrutiny).

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Directorates Who Discredit Truthful Witnesses (W/80 Highlights)
by Gunnar Larson 23 Aug '24

23 Aug '24

“And the persons who ultimately are harmed by all of this, of course, is the average consumer, the average citizen, who has no knowledge, unless it paid attention to this hearing, of the extent of the manipulations that have been carried out by the largest financial institutions in America and, indeed, probably the world.” - Senator John McCain *Highlights and working notes on the ethical limits of discrediting the truthful witness, observing modern directorates and ethics rules that fail to prevent truth distortion by unethical means (Source research by Marquette Law Review).* History provides the epic example of Enron and a cunning Board of Directors of misleaders, a team of flimflam artists who used sly rhetorical skills to bamboozle the public, turning night into day. In this conception, directorates tell stories only in order to seduce and beguile regulators who fall prey to the advocate’s star-crossed tricks. Why do company Directors employ unethical, false story techniques to advance a false defense when ethical means are available? The exponential effects of this troublesome behavior requires that the firm’s every word, action and attitude be consistent with the conclusion that is dishonest. Board directors are the ultimate self policing body of an organization, responsible for setting the tone for ethical rules and standards. Not only are modern ethical rules unable to prevent directorates who use of false-story techniques, but little can be done in the way of reforming the rules themselves so that they can more effectively regulate the unethical means by which honesty is systematically discredited and made to look untruthful. - As witnessed in New York State recently, top leaders sometimes ignore ethical rules by rationalizing away conduct known to be unethical standards of professional behavior. - More abstract-oriented discussions concerning whether society’s best interests are advanced with attempts to distort outcomes by discrediting the truth has even impacted virtual currency innovation out of New York. These points simply seem invented as an outrageous scenario presented to the public by way of question, yet they are indeed true. - There is a pattern of routinely using an arsenal of tricks to subvert the truth. The culprit may argue that the version of events is untruthful, because of a motive to fabricate the truth. In actuality, incompetence is the only true motive to fabricate directorate supported dishonesty. Now more than ever, honest and ethical leaders know that each time a directorate uses talents and skills to pollute the marketplace with lies (either explicit or implicit) to manipulate profits is an act that initially diminishes the chances of a prosperous society. Such practice of engaging in conduct that involves dishonesty, fraud, deceit or misrepresentation is impermissible and should not be tolerated. Without swift action, the public may lose confidence in both system wide innovation and maximizing the whole human potential of our species. - Alternatively, employing truthful answers to string together a series of inferences that collectively weaken the case of interlocking directorates. - Vigorously defending potentially problematic interlocking directorates can be systematically re-purposed with the goal of protecting the innocent. We share 80 highlights to Todd A. Berger’s (published by Marquette Law Review) “The Ethical Limits of Discrediting the Truthful Witness: How Modern Ethics Rules Fail to Prevent Truthful Witnesses from Being Discredited Through Unethical Means.” ---- Directorates Who Discredit Truthful Witnesses (W/80 Highlights): https://drive.google.com/file/d/1XzfRqxxDD5OzQgkH1Ok2wdO25JZiqVev/view?usp=… -- *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 +1-917-580-8053 New York, New York 10001

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BREAKING: Crypto Lobbyist Hit With FTX Campaign Finance Charges
by Gunnar Larson 22 Aug '24

22 Aug '24

BREAKING: Crypto Lobbyist Hit With FTX Campaign Finance Charges <https://www.law360.com/banking/articles/1872712?nl_pk=feb6bbba-7878-4d39-be…> By Rachel Scharf Manhattan federal prosecutors announced Thursday that Michelle Bond, a crypto industry lobbyist and the girlfriend of convicted former FTX executive Ryan Salame, has been charged with getting the now-defunct digital asset exchange to illegally finance her unsuccessful 2022 congressional campaign. Indictment attached | Read full article » <https://www.law360.com/banking/articles/1872712?nl_pk=feb6bbba-7878-4d39-be…> | Save to favorites » <https://www.law360.com/banking/articles/1872712?nl_pk=feb6bbba-7878-4d39-be…>

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