August 2024 - cypherpunks - lists.cpunks.org

Anthropic Hit With Another Copyright Suit Over LLM Training
by Gunnar Larson 21 Aug '24

21 Aug '24

Anthropic Hit With Another Copyright Suit Over LLM Training <https://www.law360.com/cybersecurity-privacy/articles/1871571?nl_pk=3dfd2fd…> By Gina Kim Anthropic PBC was hit with a proposed class action Monday in California federal court from a group of journalists and authors alleging the artificial intelligence giant is exploiting their copyrighted materials to train its large language model, Claude, without permission or a license, and has become enormously successful at their expense. Complaint attached | Read full article » <https://www.law360.com/cybersecurity-privacy/articles/1871571?nl_pk=3dfd2fd…> | Save to favorites » <https://www.law360.com/cybersecurity-privacy/articles/1871571?nl_pk=3dfd2fd…>

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Verizon Customer Says Stalker Got Her Info, Arrived With Knife
by Gunnar Larson 21 Aug '24

21 Aug '24

Verizon Customer Says Stalker Got Her Info, Arrived With Knife <https://www.law360.com/cybersecurity-privacy/articles/1871323?nl_pk=3dfd2fd…> By Travis Bland A Verizon Communications Inc. customer alleges in a North Carolina federal court complaint that the telecom violated federal privacy law when it gave her private information to a stalker who was threatening to kill her, allowing him to arrive at her house with a knife. Complaint attached | Read full article » <https://www.law360.com/cybersecurity-privacy/articles/1871323?nl_pk=3dfd2fd…> | Save to favorites » <https://www.law360.com/cybersecurity-privacy/articles/1871323?nl_pk=3dfd2fd…>

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Fwd: Meta Platforms, Inc. Board of Directors - USPTO, Digital Assets and Moscow Exchange
by Gunnar Larson 21 Aug '24

21 Aug '24

---------- Forwarded message --------- From: Chollet, Nicki <NChollet(a)kilpatricktownsend.com> Date: Fri, Apr 1, 2022, 4:21 PM Subject: RE: Meta Platforms, Inc. Board of Directors - USPTO, Digital Assets and Moscow Exchange To: g(a)xny.io <g(a)xny.io> Cc: Meta_Defensive_Disputes <Meta_Defensive_Disputes(a)kilpatricktownsend.com> Dear Gunnar, We write to confirm we represent Meta Platforms, Inc. in connection with this matter. Please direct all further correspondence on this matter to our attention. We received your letter dated March 24, 2022 and your follow up from this morning. We reviewed your correspondence, however, we are unable to determine the merits of your claim. Specifically, your letter does not provide any information regarding a specific application or registration being asserted or any evidence of your relationship with any entity owning rights in the alleged Moscow Exchange mark. Before we can properly evaluate or respond to your claim, you will need to provide additional details regarding the basis for your claim and documentation of your relationship with Moscow Exchange or ownership in the Moscow Exchange mark. Meta Platforms reserves all rights. Sincerely, *Nichole Davis Chollet **Kilpatrick Townsend & Stockton LLP* Suite 2800 | 1100 Peachtree Street NE | Atlanta, GA <https://www.google.com/maps/search/1100+Peachtree+Street+NE+%7C+Atlanta,+GA…> 30309-4528 <https://www.google.com/maps/search/1100+Peachtree+Street+NE+%7C+Atlanta,+GA…> office 404 <https://www.google.com/maps/search/1100+Peachtree+Street+NE+%7C+Atlanta,+GA…> 815 6010 | cell 404 906 6948 | fax 404 541 3387 nchollet(a)kilpatricktownsend.com | My Profile <http://www.kilpatricktownsend.com/en/People/C/CholletNicholeDavis> | VCard <http://www.kilpatricktownsend.com/vcard/NicholeDavisChollet.vcf> *From:* Gunnar Larson <g(a)xny.io> *Sent:* Friday, April 1, 2022 7:23 AM *To:* investor(a)fb.com *Cc:* MetaProsecution <MetaProsecution(a)kilpatricktownsend.com>; cypherpunks <cypherpunks(a)lists.cpunks.org> *Subject:* Re: Meta Platforms, Inc. Board of Directors - USPTO, Digital Assets and Moscow Exchange Dear Meta Board of Directors: It has been eight days since our original correspondence, seeking clarity between Meta's logo and the Moscow Exchange logo. Offering Meta the benefit of the doubt, noting this could simply be some misunderstanding ... We seek Meta's clarification by 5:00pm today, Friday April 1, 2022. Respectfully yours, Gunnar Larson -- *Gunnar Larson - xNY.io <http://www.xny.io/> | Bank.org <http://bank.org/>* MSc <https://www.unic.ac.cy/blockchain/msc-digital-currency/?utm_source=Google&u…> - Digital Currency MBA <https://www.unic.ac.cy/business-administration-entrepreneurship-and-innovat…> - Entrepreneurship and Innovation (ip) G(a)xNY.io +1-646-454-9107 New York, New York 10001 On Thu, Mar 24, 2022 at 5:20 PM Gunnar Larson <g(a)xny.io> wrote: Dear Meta Board of Directors: Please find the attached memo <https://docs.google.com/document/d/1f_fq1GaKNaAUGEyztdm-oMtIuEW2yXj4C5aoN0G…> addressed to your attention. - Today’s correspondence is to kindly submit xNY.io’s overall concern of Meta Platforms, Inc. and Moscow Exchange mark similarities, specifically, both marks seemingly resemble a geometric design consisting of two loops and/orovals touching or intersecting. xNY.io kindly asks Meta’s Board to respond by Friday, March 25, 2022 at 5:00pm EST. Respectfully yours, Gunnar Larson -- *Gunnar Larson - xNY.io <http://www.xNY.io> | Bank.org <http://Bank.org>* MSc <https://www.unic.ac.cy/blockchain/msc-digital-currency/?utm_source=Google&u…> - Digital Currency MBA <https://www.unic.ac.cy/business-administration-entrepreneurship-and-innovat…> - Entrepreneurship and Innovation (ip) G(a)xNY.io +1-646-454-9107 New York, New York 10001 ------------------------------ Confidentiality Notice: This communication constitutes an electronic communication within the meaning of the Electronic Communications Privacy Act, 18 U.S.C. Section 2510, and its disclosure is strictly limited to the recipient intended by the sender of this message. This transmission, and any attachments, may contain confidential attorney-client privileged information and attorney work product. If you are not the intended recipient, any disclosure, copying, distribution or use of any of the information contained in or attached to this transmission is STRICTLY PROHIBITED. Please contact us immediately by return e-mail or at 404 815 6500, and destroy the original transmission and its attachments without reading or saving in any manner. ------------------------------ ***DISCLAIMER*** Per Treasury Department Circular 230: Any U.S. federal tax advice contained in this communication (including any attachments) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any transaction or matter addressed herein.

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Enron’s Board of Directors: Contemporary Lessons on Crypto Marketplace Manipulation Computer Crimes - Crypto Computer Crimes Manual (W/187 Highlights Attached)
by Gunnar Larson 21 Aug '24

21 Aug '24

A few years ago, I wrote an essay titled: "Enron’s Board of Directors: Contemporary Lessons on Crypto Marketplace Manipulation Computer Crimes - Crypto Computer Crimes Manual (W/183 Highlights) Working references on disclosure controls and procedures, as well as strategic initiatives including mergers and acquisitions, joint ventures, and management restructurings (including public/private board of directors). Full, fair, and accurate disclosures from all parties in a battle for corporate influence or control are critically important to investors, particularly when they are called upon to make decisions about their investments. Contemporary crypto computer crimes likely are key considerations relevant to making informed investment decisions by sophisticated investors, underscoring protection of pension assets via keen planning. BitLicense marketplace manipulation techniques and potential cross-border computer crimes has been a major focus of xNY.io's scholar research/innovation communication and Bank.org's business plan execution strategy. The World Bank (WorldBank.org) notes that vulture funds endanger the gains made by debt relief to poorest countries. "The Bank has already delivered more than $40 billion in debt relief to 30 of these countries...thanks to this, countries like Ghana can provide micro-credit to farmers, build classrooms for their children, and fund water and sanitation projects for the poor," wrote World Bank Vice President Danny Leipziger in 2007. World Bank directors warn that strategies adopted by vulture funds divert much needed debt relief away from the poorest countries on earth and into the bank accounts of the wealthy. Bank.org is clear-eyed; microcredit lending fraud is a major issue for developing economies. Likewise, in western developed economies, market history warns that when boards of directors approve of and/or ignore the misuse of computer software programs which compute values based upon data input formulas from active cross-border manipulation structures, the results can lead to scandals like Enron. Such outcomes cost investors billions of dollars when the share prices of affected companies collapse, while also shaking public confidence in the United States securities markets. Enron’s Board of Directors: Contemporary Lessons on Crypto Marketplace Manipulation Computer Crimes In its 2000 review of best corporate boards, Chief Executive Magazine included Enron among its five best boards. Even with its complex corporate governance and network of intermediaries, Enron was still able to "attract large sums of capital to fund a questionable business model, conceal its true performance through a series of accounting and financing maneuvers, and hype its stock to unsustainable levels."On paper, Enron had a model board of directors comprised predominantly of outsiders with significant ownership stakes and a talented audit committee of various state and federal regulators. Two decades later, in 2021, it is clear that cryptocurrency and blockchain computer software systems require contemporary, ethically pure and sound cultivation to support the realization of a "generation of innovation," maximizing the full potential of blockchain software technologies. Board directors that will pioneer the next chapters of the meaningful New York legacy of global, cross-border banking will agree: Close scrutiny of corporate governance and greater responsibility placed on directors to vouch for the reports submitted to the SEC and other federal agencies have resulted in the growth of computer software solutions such as blockchain systems and processes. Cryptocurrency and Blockchain computer software products allow corporate directors and internal auditors to assemble and analyze financial and other relevant data—including unstructured data—and create reporting required by New York BitLicense regulators and various Federal counterparts. Before its demise, Enron was lauded for its sophisticated software, including financial risk management tools powered by computer software. Risk management was crucial to Enron not only because of its regulatory environment, but also because of its business plan. Enron established long-term fixed commitments which needed to be hedged to prepare for the invariable fluctuation of future energy prices. Enron's downfall was attributed to its reckless use of derivatives and special purpose formulas manipulated by computer accounting software tools. To engage in probable computer crimes, Enron hedged its risks with special purpose entities which it owned, and Enron retained the risks associated with the transactions. Enron's aggressive accounting practices were not hidden from the board of directors, as later learned by a Senate subcommittee. The board was informed of the rationale for using the Whitewing, LJM, and Raptor transactions, and after approving them received status updates on the entities' operations. Although not all of Enron's widespread improper accounting practices were revealed to the board, the practices were dependent on board decisions. Eliminating Bad Board of Director Schemes Ranging from additional corporate board responsibilities to criminal penalties, the Securities and Exchange Commission (SEC) implemented disclosure requirements to comply with the law. A recent SEC order reiterated the importance of the disclosures, noting that the requirements were adopted in order to alert the market to large and rapid accumulation of shares that might represent a possible change in corporate control so that shares can be valued accordingly. The SEC order also noted that the requirements were designed to provide an issuer’s management with timely information to appropriately protect its shareholders’ interests (including pension protections). The SEC’s recent enforcement actions relate to disclosure obligations in connection with M&A transactions and fights for corporate control. In 2015, the SEC brought forth a number of similar enforcement actions alleging that filers had failed to update their disclosures after taking steps towards certain plans and proposals. These types of enforcement actions continue to create challenging issues for practitioners, particularly when potential transactions are still in the early stages of planning and preliminary negotiation. The SEC’s historic actions serve as a reminder to investors, including vulture activists, that Schedule 13D violations can result in monetary liability and, in the case of registered funds and investment advisers, can also have other regulatory consequences. Care must be taken to avoid those communications constituting group activities with disclosure consequences. It should be noted that in some cases, coordination among the parties or sharing of information is sufficient to form prompts for disclosure purposes. Intention of Disclosing Crypto Computer Crimes Manual (W/183 Highlights) Published by the Office of Legal Education Executive office for United States Attorneys, the “Prosecuting Computer Crime Manual” has been xNY.io’s reference guide as international scholars researching Crypto Computer Crimes and how to best position corresponding Bank.org business innovation moving forward. The SEC encourages the description of any plans or proposals such as Proof of Burn (PoB) or Short Selling market activities which may relate to or would result in: The acquisition by any person of additional securities of the issuer, or the disposition of securities of the issuer; An extraordinary corporate transaction, such as a merger, reorganization or liquidation, involving the issuer or any of its subsidiaries; A sale or transfer of a material amount of assets of the issuer or any of its subsidiaries; Any change in the present board of directors or management of the issuer, including any plans or proposals to change the number or term of directors or to fill any existing vacancies on the board; Any material change in the present capitalization or dividend policy of the issuer; Any other material change in the issuer's business or corporate structure, including but not limited to, if the issuer is a registered closed-end investment company, any plans or proposals to make any changes in its investment policy for which a vote is required by section 13 of the Investment Company Act of 1940; Changes in the issuer's charter, bylaws or instruments corresponding thereto or other actions which may impede the acquisition of control of the issuer by any person; Causing a class of securities of the issuer to be delisted from a national securities exchange or to cease to be authorized to be quoted in an inter-dealer quotation system of a registered national securities association; A class of equity securities of the issuer becoming eligible for termination of registration pursuant to section 12(g)(4) of the Act; or Any action similar to any of those enumerated above. Below we share 187 highlights to the Computer Crimes Manual 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. https://drive.google.com/file/d/11tbgHgDg8qagomO-NBffvIFpxXKmBC3g/view?usp=…

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Insider Trading Won't Impact Pilot's Tax Sentencing Guidelines
by Gunnar Larson 21 Aug '24

21 Aug '24

Insider Trading Won't Impact Pilot's Tax Sentencing Guidelines <https://www.law360.co.uk/financial-services-uk/articles/1871826?nl_pk=a94fc…> By Elliot Weld A Manhattan federal judge found Tuesday that insider trading allegations won't bump up the guidelines sentencing range for a pilot for U.K. billionaire Joe Lewis who pled guilty to tax evasion. Order attached | Read full article » <https://www.law360.co.uk/financial-services-uk/articles/1871826?nl_pk=a94fc…> | Save to favorites » <https://www.law360.co.uk/financial-services-uk/articles/1871826?nl_pk=a94fc…>

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Barclays Told To Reassess Promotion Process After Bias Case
by Gunnar Larson 21 Aug '24

21 Aug '24

Barclays Told To Reassess Promotion Process After Bias Case <https://www.law360.co.uk/financial-services-uk/articles/1871531?nl_pk=a94fc…> By Sophia Dourou A former vice president of Barclays was not passed over for a promotion because she was an Asian Muslim woman, but a split employment tribunal urged the bank to look at its promotion process. Read full article » <https://www.law360.co.uk/financial-services-uk/articles/1871531?nl_pk=a94fc…> | Save to favorites » <https://www.law360.co.uk/financial-services-uk/articles/1871531?nl_pk=a94fc…>

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Clifford Chance 'In Shock' Over Missing Partner
by Gunnar Larson 21 Aug '24

21 Aug '24

Clifford Chance 'In Shock' Over Missing Partner <https://www.law360.co.uk/financial-services-uk/articles/1871594?nl_pk=a94fc…> By Christopher Crosby Clifford Chance said Tuesday that it is "in shock and deeply saddened" that a partner is among six passengers missing from a yacht that was reportedly chartered to celebrate the legal victory of technology entrepreneur Mike Lynch. Read full article » <https://www.law360.co.uk/financial-services-uk/articles/1871594?nl_pk=a94fc…> | Save to favorites » <https://www.law360.co.uk/financial-services-uk/articles/1871594?nl_pk=a94fc…>

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FCA Move To Results-Based Regulation Could Hurt Firms
by Gunnar Larson 21 Aug '24

21 Aug '24

FCA Move To Results-Based Regulation Could Hurt Firms <https://www.law360.co.uk/financial-services-uk/articles/1871133?nl_pk=a94fc…> By Alex Davidson The Financial Conduct Authority's planned move to an outcomes-based approach to regulation is raising concerns among lawyers that the resulting uncertainty could undermine companies in the sector and weaken the government's push for international competitiveness. Read full article » <https://www.law360.co.uk/financial-services-uk/articles/1871133?nl_pk=a94fc…> | Save to favorites » <https://www.law360.co.uk/financial-services-uk/articles/1871133?nl_pk=a94fc…>

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All the Devils from 2008 Are Back at the Megabanks: Leverage, Off-Balance-Sheet Debt, Over $192 Trillion in Derivatives, Shaky Capital Levels
by Gunnar Larson 20 Aug '24

20 Aug '24

https://wallstreetonparade.com/2024/08/all-the-devils-from-2008-are-back-at… By Pam Martens and Russ Martens: August 20, 2024 ~ Taming the Megabanks, Book JacketAs indicated on the above graph, as of December 31, 2023, Goldman Sachs Bank USA, JPMorgan Chase Bank N.A., Citigroup’s Citibank and Bank of America held a staggering total of $168.26 trillion in derivatives out of a total of $192.46 trillion at all federally-insured U.S. banks, savings associations and trust companies. That’s just four banks holding 87 percent of all derivatives at all 4,587 federally-insured financial institutions in the U.S. that existed as of December 31, 2023. You might be asking yourself the very valid question as to why the Dodd-Frank financial reform legislation of 2010, that followed the Wall Street financial quake of 2008, didn’t correct the derivatives gambling that played a central role in crashing the U.S. financial system. For why the threat of derivatives never actually went away, see our report: Meet the Two Congressmen Who Facilitated Today’s Derivatives Nightmare at Wall Street’s Mega Banks. As one example of the insane level of leverage concentrated in a handful of megabanks, look at the entry in the above chart for Goldman Sachs Bank USA. That federally-insured bank, part of the international trading conglomerate known as Goldman Sachs Group, is allowed by its federal regulators to have $521 billion in assets but $54 trillion in derivatives. But don’t worry. Under U.S. accounting rules, these derivatives can be whittled down under the magic known as “netting,” and conveniently moved out-of-sight/out-of-mind off the balance sheet. When the Financial Crisis Inquiry Commission released their final forensic report on the causes of the 2007 to 2010 financial collapse – the worst crisis since the 1929-1932 collapse and Great Depression that followed – it pointed to hidden leverage in off-balance sheet entities at the megabanks on Wall Street as a key driver of the crisis. It wrote: “From 2000 to 2007, large banks and thrifts generally had $16 to $22 in assets for each dollar of capital, for leverage ratios between 16:1 and 22:1. For some banks, leverage remained roughly constant. JP Morgan’s reported leverage was between 20:1 and 22:1. Wells Fargo’s generally ranged between 16:1 and 17:1. Other banks upped their leverage. Bank of America’s rose from 18:1 in 2000 to 27:1 in 2007. Citigroup’s increased from 18:1 to 22:1, then shot up to 32:1 by the end of 2007, when Citi brought off-balance sheet assets onto the balance sheet. More than other banks, Citigroup held assets off of its balance sheet, in part to hold down capital requirements. In 2007, even after bringing $80 billion worth of assets on balance sheet, substantial assets remained off. If those had been included, leverage in 2007 would have been 48:1, or about 53% higher. In comparison, at Wells Fargo and Bank of America, including off-balance-sheet assets would have raised the 2007 leverage ratios 17% and 28%, respectively.” Citigroup, of course, blew itself up in 2008 and received the largest bailouts in global banking history. By March of 2009, its stock was trading at 99 cents. By July 2010, it had received $2.5 trillion in secret revolving loans from the Fed over the span of 2-1/2 years, according to the 2011 audit of the Fed’s emergency bailout programs that was released by the Government Accountability Office. Today, JPMorgan Chase is creating unfathomable risk transfer vehicles and placing them off its balance sheet. What could possibly go wrong? In January, Anat Admati, Professor of Finance and Economics at Stanford Graduate School of Business, and German economist Martin Hellwig, released an updated and expanded version of their 2013 book The Bankers’ New Clothes: What’s Wrong with Banking and What to Do about It. In it, the authors write: “Some of the risks that make JPMorgan Chase dangerous cannot actually be seen by looking at its balance sheet because the positions that give rise to them are not included there. These are risks from business units that JPMorgan Chase might own in part or that it sponsors, and to which it has provided guarantees to serve as a backstop if they should have funding problems. These units might be full-flown subsidiaries, or they might be mere ‘letterhead firms,’ vehicles without any drivers, that are established for legal or tax reasons only. The bank’s commitments to these units amount to almost a trillion dollars, but these potential liabilities of the bank are left off the bank’s balance sheet. Yet they are quite relevant to the financial health of JPMorgan Chase.” According to financial data at the Federal Financial Institutions Examination Council (FFIEC), as of December 31, 2023, JPMorgan Chase held $3.227 trillion off-balance sheet. In JPMorgan Chase’s 10-K public filing with the Securities and Exchange Commission for the period ending December 31, 2023, it reported total assets on its balance sheet of $3.875 trillion. (See page 46 at this link.) That’s versus the FFIEC data showing it has another $3.227 trillion off-balance sheet. The chart below shows the stunning breakdown of the $3.2 trillion JPMorgan Chase is holding off-balance sheet according to data at the FFIEC. (See this link; check the box “Off-Balance Sheet Items,” then click the hyperlink for “Off-Balance Sheet Items.”) JPMorgan Chase’s off-balance sheet hubris goes a long way in explaining why the bank’s federal regulators are demanding that it increase its capital by 25 percent. The bank’s response to that was to go on the offensive through its lobbying groups and threaten to sue its federal bank regulators. On Saturday, Bloomberg News reported that Dimon and other megabank CEOs had huddled in private with Jerome Powell, Chair of the Federal Reserve, on July 19 in an effort to weaken the proposed increases in the capital rule. Because Wall Street megabanks have honed to perfection a century-old bag of tricks that enable them to get their way by intimidating their regulators, game accounting rules with impunity, and put personal greed above the good of the country – the only means of restoring sanity and stability to the U.S. financial system is for Congress to restore the Glass-Steagall Act, which would permanently separate federally-insured banks from the trading casinos on Wall Street. The seminal book on the critical and urgent need to restore the Glass-Steagall Act is Taming the Megabanks: Why We Need a New Glass-Steagall Act, by Arthur E. Wilmarth. Engaged and concerned Americans owe it to themselves and their families to read this book, understand how the U.S. financial system has morphed into an institutionalized wealth-transfer system, moving wealth from the middle class to the pockets of the denizens of Wall Street. (See, for example, PBS Drops Another Bombshell: Wall Street Is Gobbling Up Two-Thirds of Your 401(k).)

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Why DOJ's Whistleblower Program May Have Limited Impact
by Gunnar Larson 20 Aug '24

20 Aug '24

Why DOJ's Whistleblower Program May Have Limited Impact <https://www.law360.com/banking/articles/1870903?nl_pk=feb6bbba-7878-4d39-be…> The U.S. Department of Justice’s new whistleblower pilot program aims to incentivize individuals to report corporate misconduct, but the program's effectiveness may be undercut by its differences from other federal agencies’ whistleblower programs and its interplay with other DOJ policies, say attorneys at Milbank. 1 document attached | Read full article » <https://www.law360.com/banking/articles/1870903?nl_pk=feb6bbba-7878-4d39-be…> | Save to favorites » <https://www.law360.com/banking/articles/1870903?nl_pk=feb6bbba-7878-4d39-be…>

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