---------- Forwarded message --------- From: Gunnar Larson Date: Tue, Mar 2, 2021, 1:49 PM Subject: Tech Sprint | xNY Design Mechanism to Report Digital Regulatory Computer Crimes To: Shah, Seema (DFS) Cc: dfs.sm.DfsNext , Joshua Plant , , Dear Ms. Shah: Attending each of the Tech Sprint “info-calls” and our subsequent email correspondence, being denied Tech Sprint participation without context or reply https://thecapital.io/article/tech-sprint--ny-department-of-financial-servic... leaves us in an awkward situation. The facility of the Tech Sprint offered four “all day working sessions” along with two weeks of workshops for problem solving issues like “marketplace manipulation.” Moving on, and to properly close the Tech Sprint chapter from our perspective, today's memo is a vehicle that aims to deliver the tool of a “new-clean-slate” as foundation to our continued dialogue together. Yes, xNY.io is very fond of the idea of our friendly regulatory future relationships with DFS. Either way, xNY.io is under strict mandate of earning the Superintendent's various approvals, thus leaving no room for us to wallow in Tech Sprint blues. Tech Sprint Submission : A Design Mechanism to Report Digital Regulatory Computer Crimes Today I briefly submit an outline of reporting innovation observations and key concerns defined by the four Tech Sprint Problem Statements. Delivery of this submission files xNY.io’s Tech Sprint participation as complete. The best hybrid virtual currency architecture and pioneering modern innovation, xNY.io and the proposed “xNY” virtual currency is of pedigree with foundational intentions beyond our counterparts xRP (Ripple) and NEXO (Nexo.io). From our direct experience on the matter, xRP and NEXO built entire global operations as direct/indirect BitLicensees with intent to profit from various cross-border computer crimes https://www.justice.gov/sites/default/files/criminal-ccips/legacy/2015/01/14... such as market manipulation while being partially funded and/or directed out of New York. - Virtual currency fraud is a serious problem for such a developed country as the United States, whose bank regulators have drawn attention to the increase of these crimes. Having discovered that an unregulated virtual currency sphere (such as in Africa, or other developing markets) is very popular among virtual currency fraudsters https://www.americanbanker.com/news/jpmorgan-chase-warns-of-upcoming-fine-ov..., the New York State Department of Financial Services concluded that this kind of regulatory fraud was threatening US national security. - If the basic problem with crypto reporting innovation is monopoly power, policy should address that issue directly. If the problem is a lack of transparency and accountability in government activities, one should find ways to open up the public sector to oversight from outsiders. If the problem is an opaque and confusing regulatory structure, rules should be simplified and clarified. - As elegantly as possible xNY.io must strive to innovate beyond a Laissez-faire attitude concerning the systems and processes in which transactions between our peers are now free from (or, almost free from) any form of economic/regulatory interventions such as the BitLicense lacking cross-border regulatory logic concern. - Ms. Shah, the BitLicense and bank innovation from the great state of New York touches people on all continents on Earth, and it seems that if given the opportunity, DFS would want to solve any market manipulation matter through technology - xNY.io underscores the need for reporting innovation specific to virtual currency marketplace manipulation and/or other crypto cross-border regulatory arbitrage frameworks directed out of New York that touching over 1 billion people (as clearly detailed in the Earth_ID conditional BitLicence application currently in DFS review). - xNY.io is concerned that DFS has potentially ignored our interests ensured through interpretations of specific provisions in the existing national and supra-national legal framework (civil law, securities law, bankruptcy law, international human rights law and civil rights law). The Superintendent may now lead New York and the global virtual currency industry in clarify the rights of the public and obligations of BitLicense members engaged in the global virtual currency economy. - This can be achieved through subtle action on “conditional approvals” that are well earned from DFS review. - BitLicense regulation must preserve a technology-neutral, principle-based, non-discriminatory framework for the next generation of modern New York virtual currency public policy, naturally to support innovation within the limits imposed by overriding international public interests. Our Tech Sprint participation was aimed at working through these matters together in a structured setting. Being champions for the rights of our future customers, it is xNY.io’s observation that DFS is not winning at engaging technology and reporting processes specific to fostering civil https://www.nysenate.gov/legislation/laws/CVR/human rights https://drive.google.com/drive/folders/1R1ExVvx8uIibM_w5X3BjG4eTDbJH_oSC?usp.... There should be no open question on where New York stands on any matter concerning human and civil rights at home or abroad. About the Design Mechanism Behind our Tech Sprint Concept Ms. Shah, during our calls together, we discussed focusing on the listed problem statement concerning “Marketplace Manipulation.” xNY.io is concerned that these "Computer Crimes" are a marketplace manipulation matter associated with current BitLicense architecture and subject to DFS attention related to cross-border/international organized groups (that are cyber-based in New York). Given the critical role that honest and fair dealing of virtual currency is core to the BitLicense mandate, should admitted felons and serial miscreants (aka New York banks) be allowed to further expand their racket via global crypto regulatory arbitrage? xNY.io’s key definition of virtual currency computer crimes, is a consistent message across markets. These crimes are relatively new, having been in existence for only as long as Bitcoin has—which explains how unprepared society and the world, in general, is towards combating these crimes AND we see this as no fault of DFS and the original BitLicense mandate (unless not resolved before end of 2021). Goldman Sachs’ MoneyGram, NEXO, BitGo, Ripple and several BitLicensee connections profit daily from virtual currency market manipulation computer crimes with cross-border reach operating as a large syndicate group from lower Manhattan. Many DFS sanctioned BitLicencees today are very profitable enterprises and they may straddle nationalities in ways that you never would have imagined. xNY.io notes our relationship with xRP and NEXO as examples. - Ms. Shah, the jury is in and the NY-EU "CryptoBank '' regulatory loophole is a case for virtual currency market manipulation affecting computer systems and software (aka the Bitcoin blockchain) in Africa, Europe and New York State at the very least... - This activity is harming New York and xNY.io’s international virtual currency computer systems, process and overall technology (as outlined in the Earth_ID conditional Bitlicense application under DFS review) ... - xNY.io points to Ripple.com and Nexo.io as party to delaying blockchain innovation AND possibly humanity as a whole only in the name of profits of Goldman Sachs and associated bad actors - For example, New York, Europe and Africa are connected by a freeway of cross-border arbitrage frameworks. Due to easily exploitable laws in developing countries, some BitLicensees straddle daily New York, Europe and in Africa operations that evade detection and prosecution from law enforcement. Our first “conditional BitLicense” application outlined this matter in detail. - xNY.io efforts to bypass this creatively, certainly pioneering innovation and modern New York enterprise with opening CryptoBank and the xNY virtual currency Keeping all this in mind with a positive/optimistic attitude, many agree any best Tech Sprint design mechanism must have potential to innovate virtual currency industry's reporting standards should (at the very least...) aim to tackle computer crime and/or innovate beyond and strive to meet a new level that is required to support the generation of a New York international CryptoBank. Ms. Shah, in reality foreign regulators have repeatedly filed enforcement actions against the largest banks on Wall Street for engaging in fraud and rigging markets. Communicating it another way, NY-DFS may find xNY.io’s approach exotic and/or fresh, but in reality our foreign regulators have repeatedly enforced actions against (directly or indirectly) BitLicensees now freely leveraging virtual currency frameworks to rig markets abroad while being headquartered in New York. Computer Crimes (Cross-Border) and Modern BitLicense Regulatory Logic xNY.io seeks various approvals by the Superintendent to protect our enterprise and overcome any and all unnecessary delay or further loss or harm related to interstate or international transmission of threats directed against computers and computer systems (aka the Bitcoin Blockchain) and CryptoBank. New York banks’ traditional engagement of regulatory arbitrage has overflowed the BitLicense and correspondingly is responsible for global virtual currency marketplace manipulation computer crimes, some experts debate if Goldman Sachs is a RICO concern. xNY.io is at various levels a product of the best of New York banks domestically and internationally (New York, Europe and Africa…) and as such chooses to innovate rather than litigate. Given the inherent universal cross-border nature of virtual currencies, there is no real good reason for New York firms under the BitLicense mandate to manipulate other global markets via regulatory arbitrage. Circumnavigating this problem is key to modern BitLicense logic - MoneyGram, for example banks customer fees spanning postal mail, a telephone call, electronic mail, or through a other computerized messaging service. Computer Crimes as a threat is no less a threat because it is contingent, because the speaker does not intend or is unable to carry it out because the threat was not directly communicated to the MoneyGram customer as a target, or because the language used might be considered cryptic or ambiguously not part of the current BitLicense mandate. - Goldman Sachs’ legacy MoneyGram investment vs. direct correlation between xRP and NEXO virtual currencies arguably covers many computer crimes including wire fraud and cross-border marketplace manipulation. - Additionally, xRP and NEXO operating as potential bad actors have put the purity of blockchain systems, processes and pose purity risks to exchange software as Dark Pools, from our direct experience on the matter. - Over the last five years Goldman Sachs created layer upon layer (MoneyGram, NEXO, xRP, BitGo) of BitLicense related disguises and cross-border systems under potential conspiracy and plausible deniability to computer crimes and marketplace manipulation. - Our CryptoBank aims to elegantly side-step all this basing our innovative operations in New York and winning necessary DFS approvals. - xNY.io’s approach in seeking confidence in “reporting systems and process” as a fundamental best practice that protects ourselves and our customers from interstate or international transmission of threats against computers, computer networks, and virtual currency data networks and their programs. - xNY, CryptoBank: xNY.io vs. Nexo.io and Ripple.com - XNY, Cryptocurrency: xNY vs. NEXO and xRP Finally, and forever forgetting any sentiments about being denied Tech Sprint participation, we encourage DFS to consider that the Tech Sprint’s overall success is already a success from the xNY.io side. From our Tech Sprint “marketplace manipulation” calls together ... DFS now has a potential cross-border human/civil rights solution developed as a "tech-based" response to the problem statement(s) that specifically addresses both the threats of future damage AND the current cross-border "computer crime" merry-go-round responsible for extortionate damage already inflicted. Thank you, Ms. Shah! Next Steps … Onward! Surveying the best next steps, we hope DFS embraces the fact that xNY.io has no other option outside of moving from low into high gear on the journey of seeking various conditional approvals and beginning a long-term regulatory relationship all at the will of the Superintendent's action. - For all people on planet Earth, the question should not hinge on any debate or worry that New York regulators are not taking market manipulation seriously. - xNY.io again has every right to earn conditional approvals with the aim to serve billions of people as customers. PayPal, MoneyGram and Robinhood had their chance, so did xRP … While now NEXO aims to further leverage computer crimes at the expense of New York and the BitLicense. Our team in Europe, Africa and New York comes to DFS with an impressive and sophisticated solution of xNY.io to evolve up and innovate beyond whatever roadblocks stand in our way. Moreover, we look forward to doing all this in collaboration with DFS while fostering meaningful contributions to the legacy of New York (if nothing else, via evergreen State tax contribution). - xNY.io will be submitting a new/updated folio for DFS review and hopeful consideration of "conditional approval(s)" by the Superintendent over 2021. The new application is remarkably revolutionary … Including wise architecture for DFS and xNY.io to leapfrog cross-border computer crimes efficiently as foundation to CryptoBank and the xNY virtual currency being an elegant solution as the world deserves - Note, xNY.io aims to privately seek DFS' signal, through a series of upcoming private conversations together … Given many good reasons, DFS has a historic opportunity to signal sentiments on xNY.io’s new “conditional approval(s) on the viability spectrum on/before the DFS Tech Sprint's public 12 March "demo day" awards party. - This way, everyone wins … New York and the world is watching, let’s deliver what is deserved over 2021 via innovation that xNY.io can deliver in various forms with DFS regulatory oversight controls. xNY.io’s obvious consequences on the emotional level are associated with economic risks, directly linked to the obligation and respect to the institution of CryptoBanking and/or DFS as the regulatory body from which xNY.io entrepreneurship and innovation are required to interact. Every effort has been made to offer DFS the best possible scenario to advance xNY.io’s successful review while planting the seed for historic contributions to New York State and lead virtual currency CryptoBank innovation worldwide. Ms. Shah, please keep a lookout for xNY.io's updated “conditional” application materials concerning our good natured enterprise for DFS’ corresponding review with hopeful 2021 approval(s). Let nobody stop us. Please let me know if you or the DFS team has any feedback. Wishing you the very best Tech Sprint! All the best, Gunnar Larson On Tue, Feb 23, 2021 at 6:29 AM Gunnar Larson wrote:

Dear Ms. Shah:

I hope you are doing well.

This memo is to kindly ask for your review and/or reconsideration, and ultimately seeks the esteemed Superintendent's permission to participate in the upcoming Tech Sprint and corresponding workshop events beginning next week.

My application exceeds the Tech Sprint's participation criteria on various levels. Further, from our last correspondence on ethics/legal on January 28th (below), combined with the background of several intro calls with the DFS team related to excitement of participating in the Tech Sprint, it seems that perhaps a simple mistake was made on the application's approval.

*The Tech Sprint focuses on virtual currency innovation concerning reporting standards:*

- Please trust with certainty, myself and the xNY.io team hold nothing more than respect for DFS and understand we are at the will of the Superintendent. - Further, I sumit for the Superintendent's consideration, any institution or organization, which sponsors or conducts a contest or exhibition (*aka Tech Sprint*), and advertises or bills such contest or exhibition as a New York state championship contest ("*The event will end with an awards ceremony to celebrate the winning teams..."*) or uses the words "New York state" in its announcements ("*https://www.dfs.ny.gov/techsprint https://www.dfs.ny.gov/techsprint"*) is subject to equal rights of public accommodation. - Ms. Shah (and, please do correct me if I am mistaken), at base level standards, civil and political rights are a class of rights that protect individuals' freedom from infringement by governments, social organizations, and private individuals. They ensure one's entitlement to participate in the civil and political life of society and the state without discrimination or repression.

Given many factors, I am concerned my application being denied to participate in the Tech Sprint has been a simple mixup as the only plausible scenario. Today's memo seeks to freely navigate the process of being granted Tech Sprint participation approval without delay. I would like to clear this up any confusion on the matter today, if possible.

Greatly looking forward to hearing your thoughts and approval for the Tech Sprint's workshop participation.

Warm regards,

Gunnar -- *Gunnar Larson - www.xNY.io http://www.xNY.io * MSc https://www.unic.ac.cy/blockchain/msc-digital-currency/?utm_source=Google&utm_medium=Search&utm_campaign=MSc-Digital-Currency-North-America&utm_term=blockchain%20unic&gclid=Cj0KCQiAyJOBBhDCARIsAJG2h5ctwwMz0MRbVSk-LaYD-GMU5UgDSw7ynxbGr_a7SkaFAZzJc1-pzxEaAi4NEALw_wcB - Digital Currency MBA https://www.unic.ac.cy/business-administration-entrepreneurship-and-innovati... - Entrepreneurship and Innovation (ip)

G@xNY.io +1-646-454-9107 New York, New York 10001

On Mon, Feb 22, 2021 at 3:56 PM dfs.sm.DfsNext wrote:

...

Hello,

Thank you for your interest in the Techsprint. Unfortunately, at this time, we are not able to extend you an invitation to participate.

Thank you again for applying.

Best,

DFS Next

*DFSNext*

*New York State Department of Financial Services* 1 State Street, New York, NY 10004

www.dfs.ny.gov

---------- Forwarded message --------- From: *Shah, Seema (DFS)* Date: Thu, Jan 28, 2021 at 6:14 PM Subject: RE: TechSprint To: Gunnar Larson

Hi Gunnar,

I would totally appreciate you inviting the folks in your network mentioned below! You can craft something, but I’m just including a brief template that you can edit/modify as you see fit. And I don’t handle the ethics checks, but I really don’t anticipate any challenges coming from that for anyone. We should have an update on those by next week, so please stay tuned!

Thanks!

Seema

*Seema B. Shah*

Assistant Deputy Superintendent, Innovation

seema.shah@dfs.ny.gov | www.dfs.ny.gov