February 2025 - cypherpunks - lists.cpunks.org

Atty Should Lose License In Billing Scandal Case, Judge Says
by Gunnar Larson 04 Feb '25

04 Feb '25

Atty Should Lose License In Billing Scandal Case, Judge Says <https://www.law360.com/legalethics/articles/2291227?nl_pk=87c9365b-e736-431…> By Jake Maher A San Fernando Valley attorney colluded with attorneys for the city of Los Angeles in a water utility class action for which he received a $1.65 million fee and later sought to hire hackers to spy on the judge presiding over the class suit, a State Bar of California judge has found. Decision attached | Read full article » <https://www.law360.com/legalethics/articles/2291227?nl_pk=87c9365b-e736-431…> | Save to favorites » <https://www.law360.com/legalethics/articles/2291227?nl_pk=87c9365b-e736-431…>

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Fwd: Overvalued AI companies part 2, SoftBank to double OpenAI's value?😳, The Trump Doctrine abroad and more mischief.…
by Gunnar Larson 04 Feb '25

04 Feb '25

Thank you for your email. Gunnar ---------- Forwarded message --------- From: The Cryptonite Weekly Rap <cryptoniteventures(a)substack.com> Date: Mon, Feb 3, 2025, 6:11 PM Subject: Overvalued AI companies part 2, SoftBank to double OpenAI's value?😳, The Trump Doctrine abroad and more mischief.… To: <g(a)xny.io> Will private AI company valuations be reset soon? ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ Forwarded this email? Subscribe here <https://substack.com/redirect/2/eyJlIjoiaHR0cHM6Ly9jcnlwdG9uaXRldmVudHVyZXM…> for more <https://substack.com/redirect/2/eyJlIjoiaHR0cHM6Ly9jcnlwdG9uaXRldmVudHVyZXM…> Overvalued AI companies part 2, SoftBank to double OpenAI's value?😳, The Trump Doctrine abroad and more mischief... <https://substack.com/app-link/post?publication_id=1665481&post_id=156319704…> Anthony Perkins <https://substack.com/@anthonybperkins> and The Cryptonite Weekly Rap <https://substack.com/@cryptoniteventures> Feb 3 ∙ Preview <https://substack.com/@anthonybperkins> <https://substack.com/@cryptoniteventures> <https://substack.com/app-link/post?publication_id=1665481&post_id=156319704…> <https://substack.com/app-link/post?publication_id=1665481&post_id=156319704…> <https://substack.com/app-link/post?publication_id=1665481&post_id=156319704…> <https://substack.com/redirect/2/eyJlIjoiaHR0cHM6Ly9vcGVuLnN1YnN0YWNrLmNvbS9…> READ IN APP <https://open.substack.com/pub/cryptoniteventures/p/overvalued-ai-companies-…> <https://substack.com/redirect/e4d881ab-b9a4-4e01-a437-f793555521a0?j=eyJ1Ij…> *Icarus** on the side of a skyscraper in Mexico City by Ukrainian muralist Aleksei Bordusov, aka Aec <https://substack.com/redirect/1e2862a1-7004-4b69-9de9-d43d49d9057b?j=eyJ1Ij…>.* Will private AI company valuations be reset soon? We perhaps boldly asked on Saturday if the Trump Pump, AI-hype combo has led to overvalued public tech companies like Nvidia, shouldn’t it be the same-same for private VC-backed AI companies? Due to more recent events and further processing, we wanted to share a couple of deeper thoughts on the subject. As a follow-on to the $500 billion Stargate <https://substack.com/redirect/10994a7e-000b-4469-bcb3-b7449ae09ed1?j=eyJ1Ij…> announcement, SoftBank is in talks to invest up to $25 billion in OpenAI <https://substack.com/redirect/0f7890c8-5e5d-4547-a10e-4f3076531a88?j=eyJ1Ij…> for a whopping rumored valuation of $300 billion! If this is true, this would be a huge 73% uptick from the $157 billion valuation Open AI fetched in October 2024 <https://substack.com/redirect/272d7879-1a1b-4b18-9a8e-fea4761b7268?j=eyJ1Ij…>, when the company raised $6.6 billion. SoftBank also bought $1.5 billion in OpenAI shares from existing investors a few weeks back, presumably at a more favorable valuation. This potential investment would make SoftBank OpenAI's largest single backer, surpassing Microsoft's current investment of around $13 billion. <https://substack.com/redirect/80d3bf4a-31a3-478f-9c54-baf7d771bc27?j=eyJ1Ij…> *Multi-billionaires row: President Trump, Masayoshi Son, CEO of SoftBank, Oracle founder Larry Ellison, and Sam Altman announce their Stargate <https://substack.com/redirect/10994a7e-000b-4469-bcb3-b7449ae09ed1?j=eyJ1Ij…> joint venture to ‘boost AI development and infrastructure in the US.’* Why Masayoshi Son would want to almost double OpenAI's value the week after Nvidia got a half-a-trillion market cap haircut is not believable, and our bet is he is back to the negotiating table with some adjusted deal math today. Masa <https://substack.com/redirect/2ba822b9-8a74-4306-9941-2c04ed0426b1?j=eyJ1Ij…>, who was born in Japan but is a third-generation Zainichi Korean, is widely regarded as one of the most influential and successful tech investors globally, with an estimated net worth of $34 billion. ------------------------------ [image: If DeepSeek wiped out $1 trillion of public tech company value—Just watch what happens to private AI company valuations…] <https://substack.com/redirect/bd7cb0bf-2414-45fd-b5f1-a14395d207bc?j=eyJ1Ij…> If DeepSeek wiped out $1 trillion of public tech company value—Just watch what happens to private AI company valuations… <https://substack.com/redirect/bd7cb0bf-2414-45fd-b5f1-a14395d207bc?j=eyJ1Ij…> Anthony Perkins <https://substack.com/profile/1338763-anthony-perkins> and The Cryptonite Weekly Rap <https://substack.com/profile/146561965-the-cryptonite-weekly-rap> · Feb 1 Read full story <https://substack.com/redirect/bd7cb0bf-2414-45fd-b5f1-a14395d207bc?j=eyJ1Ij…> ------------------------------ Growing into your market value In our last post, we suggested that the Nvidia/DeepSeek drama was a wake-up call on several levels, and it might be a good time to review the private company AI valuations while they are still private. In particular, we suggested starting with a sales projection versus value analysis, and that it might be smart, after seeing the success of DeepSeek’s open source AI model, to start thinking of AI as more of a commodity services model with potentially smaller profit margins than anticipated. We are currently finishing the final C*ryptonite 300 top private Web3 companies list,* and so far, we have identified 75 AI unicorns amongst the batch, 36 of which were newly minted in 2024. Of those, the top 30 are listed below. <https://substack.com/redirect/2cae1924-63bb-432e-86d6-742d84909001?j=eyJ1Ij…> *The top 30 private AI companies have received $86 billion in venture capital with a combined valuation of over $771 billion, representing an average VC multiple of 9x. 🤔* Market Value-to-Sales Let’s use OpenAI’s current $157 billion valuation as a case study and speculate on a $300 billion new funding valuation in relation to sales and sales growth. OpenAI posted $3.7 million in revenue for 2024, and typical figures say OpenAI is projecting $11.6 billion in revenue in 2025. As one data point, it took Microsoft, Google, and Facebook each three years and Apple four years to go from $3 million to $11 million in sales. If OpenAI hits its 2025 mark, the company will be the fastest-growing tech company in history. A related data point is the Price/Sales ratios (i.e., total company valuation divided by projected/forward sales). Only Microsoft (14.4x ) has a better P/S ratio than OpenAI’s current valuation (13.5x, assuming record sales), with Google (4.4x), Meta (7.3x), and Apple (8.8x). At Masa’s proposed $300 billion valuation, OpenAI’s P/S ratio goes to 25.9x.🤔 Another interesting analogy here is the case of ByteDance <https://substack.com/redirect/13b67688-9372-4140-8a6a-e03b7ada1219?j=eyJ1Ij…>, the owner of TikTok. As of 2024, ByteDance's valuation was estimated at $300 billion against $146 billion in sales in 2024. ByteDance’s 2025 forecast has not been published, and their future is very mirky given the forced sale of TikTok, but the company has been operating with a 2.5x P/E. <https://substack.com/redirect/f811ea85-f337-4593-8f19-ea86b396e8d0?j=eyJ1Ij…> *Artists Boris Bare and Dominik Vukovć with the Gulliver model Hrvoje Zalukar in Zagreb <https://substack.com/redirect/ff8ee1e9-63f8-4743-8d92-4c8166ca6d31?j=eyJ1Ij…>, Croatia's capital and renowned for its street art.* Downward pressure on sales There are several reasons that OpenAI and the private venture-backed companies may not meet their revenue goals, including radical competition from BigTech players (Microsoft, Facebook, Google, Apple) and 75 private company AI unicorns and counting (xAI, Anthropic, DeepSeek). Google is bracing for what industry analysts are forecasting as a significant drop in the company’s US search market share from 92% to below 50% by 2025 <https://substack.com/redirect/5691c887-f81a-4364-8ac1-603129d04d49?j=eyJ1Ij…> 😳 primarily due to the rise of generative AI search competitors. After a 10 percent cut in ‘managerial positions’ in December 2024, Google has introduced a voluntary buyout program for employees <https://substack.com/redirect/a77c5e7c-1117-4582-886b-5a902b027696?j=eyJ1Ij…> in its ‘Platforms and Devices’—Android, Chrome, etc., to streamline operations and focus on artificial intelligence development. Google’s only way to pull out of its potential revenue spiral is to compete fiercely in the AI app markets. <https://substack.com/redirect/c5b741fc-3972-4397-9e35-cf33ccab60a1?j=eyJ1Ij…> *We doubt OpenAI will recapture any market share it earned as the first-mover in the GenAI game. Source: Menlo Ventures <https://substack.com/redirect/3b178b02-5eb5-40fb-adf1-2a36068e1b63?j=eyJ1Ij…>.* A recent study by Menlo Ventures <https://substack.com/redirect/3b178b02-5eb5-40fb-adf1-2a36068e1b63?j=eyJ1Ij…> also showed that OpenAI lost market share in enterprise AI this year, dropping from 50% to 30%, while private company competitor Anthropic <https://substack.com/redirect/c9e1f997-1cf2-4d07-8d02-0f708b6e1d4c?j=eyJ1Ij…> doubled its share in the sector. Behind Anthropic are dozens of startups nipping at OpenAI’s (and each other’s) heels with faster, cheaper, and more specialized AI services. As an example, at Cryptonite, we prefer Perplexity <https://substack.com/redirect/1e7eb0b2-cc27-4fe6-9de8-a9d5c6eaec72?j=eyJ1Ij…>’s general search and xAI <https://substack.com/redirect/003fe271-34c3-4e05-b419-e5f743da1f16?j=eyJ1Ij…>’s Grok for a more technical search, including most of the financial numbers and analysis for this post. We are waiting for xAI’s laptop version, and then we can share our xAI <https://substack.com/redirect/003fe271-34c3-4e05-b419-e5f743da1f16?j=eyJ1Ij…> links as well. It’s a humble reminder that Google Search was the 17th search engine brought to marke <https://substack.com/redirect/28873496-b87c-45ab-a6ee-2448f3f066a8?j=eyJ1Ij…>t; Facebook successfully followed the Friendster flame-out and MySpace. So, any talk about the benefits of OpenAI’s ‘first-mover advantage <https://substack.com/redirect/db85265f-19bb-4e85-a2d7-c604b9c7802c?j=eyJ1Ij…>’ runs contrary to Silicon Valley entrepreneurial company history. ------------------------------ [image: Cryptonite's predictions for 2025—Short Google, Nvidia, & OpenAI?, the Elon/Zuck alliance, Robotaxis takeover, IPOs up...] <https://substack.com/redirect/468ef1c1-f269-4241-b115-ca80d5a7143e?j=eyJ1Ij…> Cryptonite's predictions for 2025—Short Google, Nvidia, & OpenAI?, the Elon/Zuck alliance, Robotaxis takeover, IPOs up... <https://substack.com/redirect/468ef1c1-f269-4241-b115-ca80d5a7143e?j=eyJ1Ij…> The Cryptonite Weekly Rap <https://substack.com/profile/146561965-the-cryptonite-weekly-rap> and Anthony Perkins <https://substack.com/profile/1338763-anthony-perkins> · Jan 6 Read full story <https://substack.com/redirect/468ef1c1-f269-4241-b115-ca80d5a7143e?j=eyJ1Ij…> ------------------------------ Open source is here to stay and will be a commoditizing force We still strongly contend that, in the long run, AI’s biggest winners will not be the companies that produce remarkably fast marginal cost commodity services but the AI-powered users leveraging the new tools to spend less time producing a lot more work. The biggest disruption of the DeepSeek story is not that the company is going to win in the market—it won’t because, like the current TikTok, it must adhere to the CCP’s censorship guidelines <https://substack.com/redirect/f5c1c23b-e170-4b75-b746-b8d5c88a0402?j=eyJ1Ij…>. It’s because DeepSeek’s novel, ‘optimization advances,’ as Zuck calls them, has shown Meta and Sam Altman what is possible and what code to swipe from the Chinese company to do the same. Copy and paste *‘DeepSeek had a few pretty novel infrastructure optimization advances, which, fortunately, they published, so we can not only observe what they did, but we can read about it and implement it, so that'll benefit us. It's always interesting when there's someone who does something better than you, and that motivates me to make sure we're on it.’* *—Mark Zuckerberg Talked of DeepSeek's advantages at an all-hands Meta employee meeting last Thursday <https://substack.com/redirect/0011822e-9663-4b77-ae4d-c984e45ac937?j=eyJ1Ij…>.* *"I personally think we have been on the wrong side of history here and need to figure out a different open source strategy; not everyone at OpenAI shares this view, and it's also not our current highest priority. But OpenAI will follow DeepSeek's approach. We are gonna show a much more helpful and detailed version of this soon. Credit to R1 for updating us.* *😳* *—Sam Altman, CEO of OpenAI, on a Reddit AMA session on Friday.* All this code-swiping has inevitable long-term effects for all AI companies— cheaper development costs, the need for fewer AI chips, and commodity pricing for general-purpose consumer and enterprise GenAI services. DeepSeek's open source approach fosters a collaborative and sharing community that drives code enhancements, makes fixes and offers new solutions—all at accelerated rates and a fraction of the cost of closed models. The open-source strategy also offers several cost-efficiency advantages over its closed source rivals, such as eliminating hefty licensing costs and <https://substack.com/redirect/04f37634-e903-415a-bd08-ca50553e4a8b?j=eyJ1Ij…> offering lower API fees <https://substack.com/redirect/04f37634-e903-415a-bd08-ca50553e4a8b?j=eyJ1Ij…> . Meta chief AI scientist Yann LeCun <https://substack.com/redirect/3d448b00-936e-4f4e-98bc-a1ab05ef52ea?j=eyJ1Ij…> has said the biggest takeaway from DeepSeek's success is the value of open source AI models versus proprietary ones. LeCun says, 'DeepSeek's achievements are not that China is surpassing the US in AI, but rather that open source models are surpassing proprietary ones.' Our view is that the open source model will dominate the AI sector like never before, and most of the first GenAI companies will need to adjust as Zuck and Sam are doing. <https://substack.com/redirect/9c88ea56-9db3-4eec-9978-de64919ed7be?j=eyJ1Ij…> *Future Ventures’ Steve Jurevtson <https://substack.com/redirect/05465be3-db3a-4a8b-abdd-9d626e4ea332?j=eyJ1Ij…>, of DFJ fame, and I, an early investor and long-time board member of Tesla, are looking to fund open source AI company Zyphra <https://substack.com/redirect/232c3d42-59eb-46dd-b4c4-a1039a89ac2b?j=eyJ1Ij…> with Skype cofounder Jaan Tallinn <https://substack.com/redirect/07a18c33-e11a-4fd8-af94-500c0817bdc9?j=eyJ1Ij…>* . Introducing *Zyphra <https://substack.com/redirect/232c3d42-59eb-46dd-b4c4-a1039a89ac2b?j=eyJ1Ij…>, a US open source AI company* *Zyphra <https://substack.com/redirect/232c3d42-59eb-46dd-b4c4-a1039a89ac2b?j=eyJ1Ij…>, a Palo Alto-based open AI model developer that can be downloaded to devices like phones or home entertainment devices, is in talks to raise $100 million in Series A funding at a $1 billion valuation. Returning investor Metaplanet, which manages investments for Skype founding engineer Jaan Tallinn <https://substack.com/redirect/07a18c33-e11a-4fd8-af94-500c0817bdc9?j=eyJ1Ij…>, is in talks to lead the latest round along with Bison Ventures and Future Ventures, the firm co-founded by early Tesla investor Steve Jurvetson <https://substack.com/redirect/05465be3-db3a-4a8b-abdd-9d626e4ea332?j=eyJ1Ij…>.* *Last October 2024, Zyphra released Zamba2-7B <https://substack.com/redirect/e311003f-79c6-4790-8660-3972db55d660?j=eyJ1Ij…>, a state-of-the-art small language model that outperformed leading models from Mistral and Google's Gemma at the 7B scale, proving they are suitable for on-device applications <https://substack.com/redirect/e311003f-79c6-4790-8660-3972db55d660?j=eyJ1Ij…>. Like DeepSeek, Zyphra's technology is released under an open-source license, allowing researchers, developers, and companies to leverage its capabilities*. *Zyphra <https://substack.com/redirect/232c3d42-59eb-46dd-b4c4-a1039a89ac2b?j=eyJ1Ij…> plans to hit $30 million in annualized revenue by the end of 2025 and $100 million in annualized revenue by the end of 2026, according to fundraising documents reviewed by The Information <https://substack.com/redirect/8822b8f7-597d-40e3-a21a-6d735c7e0344?j=eyJ1Ij…>.* Just as we thought the ultimate AI company winners were coming into view, new open source AI models are rewriting the sector all over again. Open-source AI companies and their communities will play an increasingly significant role as AI innovators, accelerators, and cost cutters, spurring open access to advanced AI capabilities. All this new activity is also challenging current propped-up VC portfolio company valuations. Has the new reality that AI VCs may have invested too much money at valuations that are too high set in yet? Time shall tell—and tell us shortly. *—Anthony Perkins, founder & editor Cryptonite <https://substack.com/redirect/927ddca8-b382-4cff-8496-e91025b6ad4d?j=eyJ1Ij…>* The Trump Doctrine on full display We highly recommend watching this Megyn Kelly interview with the new US Secretary of State, Marco Rubio <https://substack.com/redirect/a38dddf1-1ebb-4984-9ab7-b901c7dded5a?j=eyJ1Ij…>, where Mr. Rubio elaborated on the ‘America First’ doctrine while also acknowledging the shift from a unipolar to a multipolar world order. He also touched upon China, Greenland, and Panama. <https://substack.com/redirect/d11decd0-5bd3-452a-b95d-785d25440c60?j=eyJ1Ij…> *"Now more than ever, we need to remember that foreign policy should always be about furthering the national interest of the United States and doing so to the extent possible while avoiding war and armed conflict. This is the duty of all countries.* *We're celebrating the 80th anniversary this year of the end of the Second World War, and I think if you look at the scale and scope of destruction and loss of life that occurred, it would be far worse if we had a global conflict today. Multiple countries now can end life on Earth, and so we need to really work hard to avoid armed conflict as much as possible."* *—Marco Rubio, US Secretary of State* After the interview, Rubio met with Panamanian President José Raúl Mulino regarding the Chinese Communist Party's growing control over the Panama Canal's operations. He expressed to President Mulino that China’s influence poses a threat to US rights <https://substack.com/redirect/c67740a6-bfd6-43c5-a60a-8e03d02d603f?j=eyJ1Ij…> and violates the 1977 Panama Canal Treaty, <https://substack.com/redirect/20fc3cfb-6e7f-42c8-afe2-778d92bd53ef?j=eyJ1Ij…> and the US might take ‘necessary measures’ if immediate changes are not made. President Mulino characterized the conversation as ‘respectful’ and ‘constructive’ and shortly after announced that Panama would not renew its participation in China's Belt and Road Initiative <https://substack.com/redirect/159b5e65-26ff-4b1c-a802-5a244b3498ec?j=eyJ1Ij…> upon its expiration. <https://substack.com/redirect/b01b6bce-0f1d-482b-804b-bd93235cc383?j=eyJ1Ij…> *Damn glad to meet you, President Maduro, and glad we can send the Tren de Aragua gang <https://substack.com/redirect/9db78639-2a71-4ed9-ab81-84a99e9dcf36?j=eyJ1Ij…> members back home to you.* So far, the Trump Doctrine is 3-for-5. Colombian President Gustavo Petro initially refused to accept US military flights carrying deported Colombian migrants; however, he quickly backed down to pressure <https://substack.com/redirect/c7cf1e48-39a7-41f3-8f52-cc36128f7129?j=eyJ1Ij…> and offered his presidential plane to fly to the US to bring them home. Meanwhile, Richard Grenell, President Trump's envoy for special missions, visited Venezuela and met with President Nicolás Maduro. Mr. Grenell came home with six freed American hostages and President Maduro’s (whose ‘election’ the US still does not recognize <https://substack.com/redirect/b78e36f6-63dc-4978-b059-af89e0a2dab4?j=eyJ1Ij…>) agreement to take back all deported Venezuelan nationals, including members of the notorious Tren de Aragua gang <https://substack.com/redirect/9db78639-2a71-4ed9-ab81-84a99e9dcf36?j=eyJ1Ij…>. The third victory was the Panama deal, as outlined above. Meanwhile, the tariffs on goods from Canada and Mexico became effective this weekend. It appears that soon departing Canadian Prime Minister Pierre Trudeau <https://substack.com/redirect/532671cc-deae-4d82-8a5e-735b455616cb?j=eyJ1Ij…> and new Mexican President Claudia Sheinbaumdo have no interest in addressing the Boogeyman’s requests for stricter enforcement against Mexican cartel drug smuggling, fentanyl production and distribution, and undocumented immigration across the Mexican and Canadian borders into the US. Given the reasonable nature of the US requests, we see both Presidents Trudeau and Sheinbaumdo backing down soon. The world will quickly figure out that President Trump’s negotiating bluster to ‘take back the Panama Canal, buy Greenland and make Canada the 51st state’ is just his way of getting everyone’s attention. Whether you love or hate the Boogeyman, his negotiating tactics work, and that is very good news for the US—*and* Canada, Mexico, Greenland, and Panama, too. Share <https://substack.com/app-link/post?publication_id=1665481&post_id=156319704…> ------------------------------

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BREAKING: RFK Jr. Nomination to Lead HHS Clears Senate Committee
by Gunnar Larson 04 Feb '25

04 Feb '25

BREAKING: RFK Jr. Nomination to Lead HHS Clears Senate Committee <https://www.law360.com/health/articles/2291834?nl_pk=0f5983ea-0173-4e74-85e…> By Yeji Jesse Lee Senate lawmakers on Tuesday morning voted to advance Robert F. Kennedy Jr.'s nomination to lead the U.S. Department of Health and Human Services. Read full article » <https://www.law360.com/health/articles/2291834?nl_pk=0f5983ea-0173-4e74-85e…> | Save to favorites » <https://www.law360.com/health/articles/2291834?nl_pk=0f5983ea-0173-4e74-85e…>

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Trump’s Hedge Fund Guy Is Now Overseeing the U.S. Treasury, IRS, OCC, U.S. Mint, FinCEN, F-SOC, and the Consumer Financial Protection Bureau
by Gunnar Larson 04 Feb '25

04 Feb '25

https://wallstreetonparade.com/2025/02/trumps-hedge-fund-guy-is-now-oversee… By Pam Martens and Russ Martens: February 4, 2025 ~ Scott Bessent, U.S. Treasury Secretary Donald Trump has placed a man with no prior government experience, Scott Bessent, in charge of overseeing a sprawling network of federal agencies that are tasked with operating and protecting the financial system of the United States. What did Bessent do previously to qualify for this powerful position? He ran a hedge fund, Key Square Capital Management LLC, with 25 employees. But, more important to the transactional world of Donald Trump, Bessent gave $1.25 million to PACs supporting Trump and tens of thousands of dollars to state and national Republican parties and candidates. Bessent was sworn in as U.S. Treasury Secretary on January 28. In that position, Bessent sits at the helm of a federal agency that includes the IRS; the Office of the Comptroller of the Currency (OCC), which regulates national banks; the Bureau of Engraving and Printing (of U.S. currency); the U.S. Mint; the Financial Crimes Enforcement Network (FinCEN), which is tasked with combating money laundering; and Bessent also Chairs the Financial Stability Oversight Council (F-SOC), which is made up of the heads of all major financial regulators. In addition, legislation passed by Congress will put Bessent in charge of the slush fund known as the Exchange Stabilization Fund; and, thanks to stealthy legislation passed during the first Trump administration, the Treasury Secretary is now a permanent member of the National Security Council (NSC) as well. And, if all that wasn’t enough, the Consumer Financial Protection Bureau (CFPB) announced yesterday that Trump had made Bessent the Acting Director of the CFPB, which protects the little guy from the predators on Wall Street and elsewhere. Republicans and bank lobbyists have been trying to kill the CFPB for decades. Bessent has been in office less than 10 days and he has already begun making unsavory headlines by handing over access to highly confidential data in the U.S. Treasury’s $6 trillion payment system to people working for unelected tech billionaire Elon Musk. Yesterday, Bloomberg Law reported that Bessent had effectively shut down much of the CFPB’s operations, writing as follows: “Treasury Secretary Scott Bessent has shut down a wide variety of operations inside the Consumer Financial Protection Bureau in his new role as acting director. “Bessent ordered the CFPB to stop all rulemaking, communications, litigation, and other activities, according to a Monday email to staff obtained by Bloomberg Law.” Senator Elizabeth Warren, the Ranking Member of the Senate Banking Committee, expressed her outrage at Bessent’s hostile takeover of the CFPB with this statement yesterday: “Secretary Bessent just sent a signal to giant corporations and big banks that it is open season to cheat, trick, and trap hard-working American families. Shutting down CFPB enforcement actions that are on the verge of delivering money into the pockets of working people is at odds with President Trump’s claim that he wants to lower costs for families – which he has done next to nothing on so far. This also follows Secretary Bessent giving Elon Musk and his cronies unprecedented access to government payment systems that deliver everything from Social Security checks to tax refunds. Secretary Bessent must reverse course, and if he doesn’t, I will use every tool at my disposal in the Banking Committee to hold him accountable – along with any company that lines its pockets at the expense of American taxpayers.” Warren is a former Harvard Law professor. She has the knowledge and the connections to back up her warnings. She cited the following examples of enforcement actions that Bessent has put “on ice” at the CFPB: “Capital One cheated millions of consumers out of $2 billion in interest by misleading them about their deposit accounts. “Walmart & Branch illegally opened over one million bank accounts for delivery drivers and charged more than $10 million in junk fees. “JP Morgan, Wells Fargo, and Bank of America allowed fraud to fester on the Zelle payment network, leading to hundreds of thousands of consumers losing nearly $1 billion. “Cash App left users out to dry with a dead-end customer support number and intentionally shoddy fraud investigations designed to discourage seeking help.” Of critical importance, Bloomberg Law also reported that Bessent’s email to CFPB staff ordered them to “suspend the effective dates” for all final rules that have not yet gone into effect. That would include two major triumphs for average Americans: the CFPB’s ban on including medical-related debt on consumer credit reports – which can negatively impact a consumer’s credit score and raise their borrowing costs – and the CFPB’s rule to cap overdraft fees at banks at $5 from the average of $35. In December, the National Consumer Law Center (NCLC) warned that the overdraft cap rule was in danger of being overturned, despite the fact that it would save consumers approximately $5 billion a year. The NCLC has set up a web page where Americans can whip off a prepared strong message to their representatives in Congress, urging that this rule move forward. Was it legal for Trump to put the head of one federal agency in charge of another federal agency? The Federal Vacancies Reform Act of 1998 provides the statutory basis for Trump placing the Treasury Secretary in charge of the CFPB on an acting basis. When a vacancy occurs in a federal agency within the Executive Branch, where the position requires a Presidential appointment and Senate confirmation, the default procedure is to name the first deputy or first assistant to the Director as the Acting Director. The President does, however, have the ability to override that default procedure and appoint anyone as Acting Director who has already been appointed to another federal agency by the President and has been confirmed by the U.S. Senate. Alternately, the President could also, under the statute, fill the position with someone employed in the agency if they had worked there for 90 days or more in the prior year. Despite these options, Trump selected a hedge fund guy with a vast array of responsibilities at Treasury to oversee the CFPB, and the first thing the hedge fund guy did was to shut down its ongoing enforcement actions, litigation and rule-making.

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Re: SpaceX Interlocking Directors’ Intent to Manipulate Markets
by Gunnar Larson 03 Feb '25

03 Feb '25

On Thu, Nov 2, 2023, 12:52 PM Gunnar Larson <g(a)xny.io> wrote: > 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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BREAKING: Trump Installs Treasury Secretary As CFPB's Acting Chief
by Gunnar Larson 03 Feb '25

03 Feb '25

BREAKING: Trump Installs Treasury Secretary As CFPB's Acting Chief <https://www.law360.com/banking/articles/2292253?nl_pk=e602c558-f520-472e-90…> By Jon Hill The Consumer Financial Protection Bureau said Monday that President Donald Trump has tapped U.S. Treasury Secretary Scott Bessent to serve as the agency's interim chief after ousting its former Director Rohit Chopra. Read full article » <https://www.law360.com/banking/articles/2292253?nl_pk=e602c558-f520-472e-90…> | Save to favorites » <https://www.law360.com/banking/articles/2292253?nl_pk=e602c558-f520-472e-90…>

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Fwd: Did this get lost in the shuffle?
by Gunnar Larson 03 Feb '25

03 Feb '25

---------- Forwarded message --------- From: Donald J. Trump <contact(a)support.donaldjtrump.com> Date: Sun, Feb 2, 2025, 12:38 PM Subject: Did this get lost in the shuffle? To: <g(a)xny.io> I know it’s been a crazy week, but this is really important! [image: TRUMP] <https://link.donaldjtrump.com/s/c/YUv2SsTeXaMGSp2Vg9IC0PfKuiwCXu1a4ql6EHvb3…> I’m collecting a list of *KEY SUPPORTERS* who I can trust to advise my new administration. So there are a couple of things that I want to make sure we are on the same page about, Gunnar. *This is a BIG one:*. *ILLEGAL ALIENS SHOULD BE BANNED FROM VOTING IN AMERICAN ELECTIONS <https://link.donaldjtrump.com/s/c/lpYSyAT9FnLTMLmxzcP7AGQkpnEWk3lX-BGNa-c27…>* *Do you agree?⭕️ YES⭕️ NO <https://link.donaldjtrump.com/s/c/VLpVDxd3_MQGWDxa5wk3Bgamr93rJ8ym6S-gu29bI…>* *Gunnar, if you respond BY MIDNIGHT I’ll add your name to the TOP of the list! ANSWER NOW. >> <https://link.donaldjtrump.com/s/c/G9dGW4ABHDI25fEVTNeV6Ua0KwfjbRy_QOpK6ARxV…>* *COMPLETE CENSUS <https://link.donaldjtrump.com/s/c/iSj5n06XlSlm9bWD4j1EGwH5uMLAX-FpiH4dkz3kt…>* Thank you for your continued support, [image: Donald J. Trump Signature Headshot] <https://link.donaldjtrump.com/s/c/xJwf3A2VjgmWGcvE1yMNpgyZYcszmfOxyPPOSsqSM…> Donald J. Trump Contributions to Trump National Committee JFC Inc. are not deductible for federal income tax purposes. All contributions are subject to the limits and prohibitions of the Federal Election Campaign Act. Contributions from corporations, foreign nationals (i.e., without “green cards”), federal government contractors, and other federally impermissible sources are strictly prohibited. Contributions made in the name of, or refunded by, any other person are unlawful. Paid for by Trump National Committee JFC, Inc., P.O. Box 509, Arlington, VA 22216. Not Authorized by any Candidate or Candidate’s Committee. You are receiving this email at g(a)xny.io. donaldjtrump.com <https://link.donaldjtrump.com/s/c/OBzEyCX8b80N9Tbvr8Wt5nAbcx8pFvTYkXp1xTuGU…> It’s because of the commitment and support from real Patriots, like YOU, that we will SAVE AMERICA! Thank you again for your generous support. If you'd like to change your subscription status follow this link. <https://link.donaldjtrump.com/s/cu/YdVMC1tZwDVMYjh_lhRGpaO5BfT_SVATKRuGMU5L…> Privacy Policy <https://link.donaldjtrump.com/s/c/uv55ow724i_BLGr3STvrCGasvgKjWbBru1uvdS88c…>

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Fwd: Trump vs. MSNBC >>
by Gunnar Larson 03 Feb '25

03 Feb '25

---------- Forwarded message --------- From: Trump Alert <info(a)dscc.org> Date: Sun, Feb 2, 2025, 5:29 PM Subject: re: Trump vs. MSNBC >> To: <g(a)xny.io> ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ *BREAKING: "Trump Calls for MSNBC to Be Shut Down"* [image: 'They shouldn't even have a right to broadcast' - Donald Trump] <https://go.dscc.org/go/21026?ask=5&t=7&firstname=&lastname=&email=g%40xny.i…> *We need to stand with journalists:**Do you support MSNBC?* Yes <https://go.dscc.org/go/21026?ask=5&t=8&firstname=&lastname=&email=g%40xny.i…> No <https://go.dscc.org/go/21026?ask=5&t=9&firstname=&lastname=&email=g%40xny.i…> Team, Donald Trump's revenge tour is reaching your living room: *He wants to SHUT DOWN MSNBC!* Trump's latest attack on free speech could have DIRE consequences. We must stand up for the First Amendment and the brave journalists who work to find the truth and hold the powerful accountable, and our URGENT Live Poll will show that Americans support MSNBC. *But unless you respond by midnight, your answer will be missing from our records, so tell us immediately:* [image: Live Poll] <https://go.dscc.org/go/21026?ask=5&t=10&firstname=&lastname=&email=g%40xny.…> *Do you support MSNBC?* Yes <https://go.dscc.org/go/21026?ask=5&t=11&firstname=&lastname=&email=g%40xny.…> No <https://go.dscc.org/go/21026?ask=5&t=12&firstname=&lastname=&email=g%40xny.…> Thanks, Team DSCC Derivative of photo <https://go.dscc.org/go/1270?t=1&firstname=&lastname=&email=g%40xny.io&addr1…> by Gage Skidmore. CC BY-SA 2.0 <https://go.dscc.org/go/1271?t=2&firstname=&lastname=&email=g%40xny.io&addr1…>. * If you've recently responded or done so with a different email address, thank you! Online records may not be up to date, but don't worry -- your responses have been recorded. [image: Chip in $5 monthly to flip the Senate] <https://secure.actblue.com/donate/support-senate-democrats-2025-q1-recurrin…> ------------------------------ The DSCC is the only committee solely dedicated to supporting Democrats in the U.S. Senate, and our work relies on grassroots supporters like you. If you'd like to make a contribution to support us, please *click here <https://secure.actblue.com/donate/support-senate-democrats-2025-q1?refcode=…>*. *Click here <https://go.dscc.org/signup/receive-fewer-emails/?t=5&akid=19500%2E26297126%…>* to receive fewer emails. *Click here <https://go.dscc.org/unsubscribe/unsubscribe/?t=6&akid=19500%2E26297126%2EyI…>* to unsubscribe. Paid for by the DSCC | PO Box 96047, Washington, DC 20090 | *dscc.org <https://www.dscc.org/>* | Not authorized by any candidate or candidate's committee. Contributions or gifts to the DSCC are not tax deductible.

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Fwd: Our path to a Senate majority –
by Gunnar Larson 03 Feb '25

03 Feb '25

---------- Forwarded message --------- From: Urgent Alert <info(a)dscc.org> Date: Sun, Feb 2, 2025, 11:19 AM Subject: Our path to a Senate majority – To: <g(a)xny.io> ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ *Two Senate special elections could change EVERYTHING, team:* STATE: FORMER SENATOR: Ohio JD Vance Florida Marco Rubio If we win these crucial states, our chances of flipping the Senate will SKYROCKET! We need to get ready immediately, so don't delay: *Chip in $5 IMMEDIATELY to FLIP key states like these, defend our progress, and take back the Senate majority >> <https://go.dscc.org/go/20854?amount=5&t=5&firstname=&lastname=&email=g%40xn…>* Donate $5 <https://go.dscc.org/go/20854?amount=5&t=6&firstname=&lastname=&email=g%40xn…> The *crucial* battleground states of Ohio and Florida represent critical opportunities to take back momentum and stop Trump from controlling the Senate *for all four years* -- so we MUST prepare *right now.* Republicans will FLOOD these states with cash to keep them red, so we need to match their megadonor money with a grassroots movement. We've launched an URGENT $50,000 midnight goal to make sure we can flip seats like these from *RED* to *BLUE* -- but we're on track to fall 23.21% short! *Please, before the deadline:* *All eyes are on Florida and Ohio. RUSH $5 or more NOW to help us win in states like these, take back the Senate, and STOP Donald Trump's MAGA agenda >> <https://go.dscc.org/go/20854?amount=5&t=7&firstname=&lastname=&email=g%40xn…>* We need your help to fight for the Senate. If you've saved payment info with ActBlue Express, your donation will be processed immediately. Donate $5 <https://go.dscc.org/go/20854?amount=5&t=8&amount=5&express_lane=true&firstn…> Donate $10 <https://go.dscc.org/go/20854?amount=5&t=9&amount=10&express_lane=true&first…> Donate $20 <https://go.dscc.org/go/20854?amount=5&t=10&amount=20&express_lane=true&firs…> Other Amount <https://go.dscc.org/go/20854?amount=5&t=11&firstname=&lastname=&email=g%40x…> Thanks, Team DSCC [image: Chip in $5 monthly to flip the Senate] <https://secure.actblue.com/donate/support-senate-democrats-2025-q1-recurrin…> ------------------------------ The DSCC is the only committee solely dedicated to supporting Democrats in the U.S. Senate, and our work relies on grassroots supporters like you. If you'd like to make a contribution to support us, please *click here <https://secure.actblue.com/donate/support-senate-democrats-2025-q1?refcode=…>*. *Click here <https://go.dscc.org/signup/receive-fewer-emails/?t=3&akid=19484%2E26297126%…>* to receive fewer emails. *Click here <https://go.dscc.org/unsubscribe/unsubscribe/?t=4&akid=19484%2E26297126%2Elt…>* to unsubscribe. Paid for by the DSCC | PO Box 96047, Washington, DC 20090 | *dscc.org <https://www.dscc.org/>* | Not authorized by any candidate or candidate's committee. Contributions or gifts to the DSCC are not tax deductible.

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As Elon Musk Begins Shutting Down Payments to Federal Contractors, a Strange Money Trail Emerges to His Operatives Inside the U.S. Treasury’s Payment System
by Gunnar Larson 03 Feb '25

03 Feb '25

*By Pam Martens and <https://wallstreetonparade.com/about-3/about/>Russ Martens <https://wallstreetonparade.com/about-3/about/>: February 3, 2025 ~* [image: Elon Musk, CEO of Tesla] <https://wallstreetonparade.com/wp-content/uploads/2021/05/Elon-Musk.jpg> Elon Musk Elon Musk is the billionaire CEO of the publicly-traded EV company, Tesla. As such, under corporate law <https://www.investopedia.com/terms/d/duty-loyalty.asp>, he owes a Duty of Loyalty to Tesla. Notwithstanding this well-established law, Musk is engaged in an array of other corporate endeavors outside of Tesla, including being the CEO of SpaceX, a private rocket company. SpaceX is a major federal contractor to NASA and the Department of Defense. See our report: The U.S. Government Is Plowing Billions into SpaceX, Overlooking Drug Use, Sex Parties, and Elon Musk’s Coziness with Putin <https://wallstreetonparade.com/2024/10/the-u-s-government-is-plowing-billio…> . Now, the New York Times, Wall Street Journal, Bloomberg News, and a host of other media outlets are reporting that Musk has used his 2-week old position as the head of a Donald Trump faux agency – the Department of Government Efficiency (DOGE) – which Trump created out of thin air last month by Executive Order <https://www.whitehouse.gov/presidential-actions/2025/01/establishing-and-im…>, to have his DOGE operatives gain access to the U.S. Treasury’s $6 trillion payment system and snoop on its payments. This means that Musk’s DOGE hires could potentially access confidential information on government contract payments made to Musk’s competitors as well as highly confidential payments related to national security. There are media reports this morning that Musk has begun to cancel payments to some federal contractors. One of the individuals engaged in this snooping on behalf of Musk, according to reporting at the New York Times, is Tom Krause, the CEO of Cloud Software Group, which describes itself as “Developer of enterprise infrastructure software” whose platform encompasses, among other things, “business intelligence.” Krause is still listed at the website of Cloud Software Group as its current CEO, as well as using that same title on his personal LinkedIn page. So how, exactly, did he gain security clearance to snoop on this vast U.S. government payment system <https://www.fiscal.treasury.gov/about.html>. Why is the Board of Directors of Cloud Software Group allowing him to engage in this legally dubious undertaking? Cloud Software Group’s major owners include Vista Equity Partners and Elliott Investment Management, according to an interview with Krause at SpencerStuart <https://www.spencerstuart.com/research-and-insight/an-investor-minded-ceo-l….> . The founder, Chairman and CEO of Vista Equity Partners is billionaire Robert F. Smith, whose net worth is pegged at $10.8 billion according to Forbes <https://www.forbes.com/profile/robert-f-smith/>. In 2020, during the first Trump administration, Smith was charged by the U.S. Department of Justice with engaging in a massive 15-year international tax fraud scheme. Smith was given a non-prosecution agreement and settled the matter for $139 million <https://www.justice.gov/opa/pr/private-equity-ceo-enters-non-prosecution-ag…> after cooperating with prosecutors. The other major co-owner of Krause’s firm, Elliott Investment Management, is the giant hedge fund founded by billionaire Paul Singer, who remains at Elliott as President, Co-Chief Executive Officer, and Co-Chief Investment Officer. Singer gave the Trump-supporting Make America Great Again Inc. PAC $5 million in one check in August of last year. In addition, *and notably*, Singer is also Chairman of the Manhattan Institute for Policy Research, a right-wing think tank. William Barr, one of Donald Trump’s Attorneys General during his first term as President, is a member of the Board of Trustees of the Manhattan Institute. Megadonors to Trump and Republicans, including hedge fund titan John Paulson <https://wallstreetonparade.com/2024/03/hedge-fund-titan-john-paulson-made-1…> and former Education Secretary Betsy DeVos in Trump’s first term, also serve on the Manhattan Institute’s Board of Trustees <https://manhattan.institute/board-of-trustees>. Senator Ron Wyden, the Ranking Member of the Senate Finance Committee has sent a letter <https://www.finance.senate.gov/imo/media/doc/letter_from_senator_wyden_to_s…> to Trump’s recently confirmed U.S. Treasury Secretary, Scott Bessent, raising national security concerns about the snooping by DOGE inside the Treasury’s payment system and demanding answers in short order.

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