Fwd: Your Freedom of Information Law ("FOIL") Request FOIL-2023-095358-021587 - Robinhood BitLicense Records Appeal - NY-DFS

[Gunnar Larson]

FTX is not the biggest fraud in the history of the United States of America.

Gunnar

---------- Forwarded message ----------
From: Gunnar Larson <g at xny.io>
To: "Mazza, Stephanie (DFS)" <Stephanie.Mazza at dfs.ny.gov>
Cc: "Reader, Shaun" <sreader at curtis.com>, letitia.james at ag.ny.gov, "Harris,
Adrienne A (DFS)" <Adrienne.Harris at dfs.ny.gov>,
Recordsaccessofficer at dfs.ny.gov, cypherpunks at cpunks.org
Bcc:
Date: Tue, 27 Feb 2024 06:43:23 -0500
Subject: Re: Your Freedom of Information Law ("FOIL") Request
FOIL-2023-095358-021587 - Robinhood BitLicense Records Appeal - NY-DFS

Ms. Mazza:

The five day deadline has passed.

This is very important particular to xNY.io - Bank.org's concern of a
crypto RICO derrived out of the BitLicense.

Ms. Mazza, when can xNY.io - Bank.org expect a response on the Robinhood
records? NY-DFS' records response to Coinbase was extremely helpful.

Have a great day.

Thank you,

Gunnar
--
Gunnar Larson

xNY.io | Bank.org

MSc - Digital Currency
MBA - Entrepreneurship and Innovation (ip)

G at xNY.io
+1-917-580-8053
New York, New York 10001


On Wed, Feb 21, 2024, 2:21 PM Gunnar Larson <g at xny.io> wrote:

> In accordance with Public Officers Law § 89(4), xNY.io - Bank.org elects
> to appeal this determination to withhold the Robinhood BitLicense Records.
>
> Turn this matter as we will, any side whatsoever appears to require
> obstruction of justice.
>
> We further demand NY-DFS send xNY.io - Bank.org an update on the
> aforementioned appeal within five (5) business days.
>
> Reserving all rights, xNY.io - Bank.org is seeking relevant relief in
> California on Robinhood.
>
> Warm regards,
>
> Gunnar
>
> ----
>
> SENT VIA EMAIL
> Email: G at xny.io
> February 21, 2024
> Mr. Gunnar Larson
> xNY.io – Bank.org
> 406 West 25th Street
> New York, NY 10001
> Re: Freedom of Information Law (“FOIL”) Tracking No. 2023-095358
> Dear Mr. Larson,
> I write in response to the FOIL request that you submitted to the New York
> State Department of Financial Services
> (“Department”), which has been assigned the above-referenced tracking
> number and reads as follows:
> Dear Madam or Sir: On August 2, 2022 the Superintendent of Financial
> Services Adrienne A. Harris
> announced that Robinhood Crypto, LLC (“RHC”) would pay a $30 million
> penalty to New York State
> for significant failures in the areas of bank secrecy act/anti-money
> laundering (“BSA/AML”)
> obligations and cybersecurity that resulted in violations of the
> Department’s Virtual Currency
> Regulation (23 NYCRR Part 200), Money Transmitter Regulation (3 NYCRR Part
> 417), Transaction
> Monitoring Regulation (23 NYCRR Part 504), and Cybersecurity Regulation
> (23 NYCRR Part 500).
> xNY.io - Bank.org would like to
> 1. receive any and all records related to NY-DFS' investigation of
> Robinhood Crypto. Including (but
> not limited to) records concerning the bespoke Supervisory Agreement
> Robinhood Crypto has with
> the Department of Financial Services mentioned here:
> https://www.dfs.ny.gov/reports_and_publications/press_releases/pr202208021
> .
> 2. In addition, xNY.io - Bank.org seeks any and all records concerning New
> York's approach to
> Robinhood Crypto and Goldman Sachs compliance programs mandated by the
> United States
> Department of Justice, Criminal Division, Fraud Section and Money
> Laundering and Asset
> Recovery Section mentioned here:
> https://drive.google.com/file/d/1Yx88RMoeLyyfbNK0RtPl4r-
> m8N21_1Sp/view?usp=drivesdk.
> 3. Finally, xNY.io - Bank.org seeks records concerning New York's
> regulatory approval of
> Robinhood Crypto engaging a fine of $30M to implement heightened controls
> and additional
> procedures and policies relating to electronic surveillance and
> investigation, due diligence on
> transactions or clients and the use of third-party intermediaries across
> business units; and enhancing
> anti-corruption training for all management and relevant employees.
> To the extent the request is reasonably described, the Department
> construes the request as seeking the records,
> correspondence, and work product exchanged between Robinhood and the
> Department in accordance with the Department’s
> August 1, 2022 Consent Order (“responsive records”).
> The records that you seek relate to an ongoing Department investigation.
> Accordingly, your request is denied
> pursuant to Public Officers Law § 87(2)(e)(i) (the “law enforcement
> exemption”), which excepts from disclosure records
> that are compiled for law enforcement purposes and that, if disclosed,
> would interfere with law enforcement investigations.
> The purpose behind the law enforcement exemption is to protect an agency’s
> investigative process from being compromised
> by revealing the scope and nature of an agency's investigation before an
> investigation is complete. See Matter of Pittari v.
> Pirro, 258 A.D.2d 202 (2d Dep’t 1999). It also bears noting that the law
> enforcement exemption applies to both civil and
> criminal investigatory files. See Madeiros v. Dep’t of Educ., 30 N.Y.3d 67
> (2017). In this instance, releasing the requested
> records would interfere with the Department’s investigative process. Thus,
> the Department is not disclosing the records that
> you request pursuant to Public Officers Law § 87(2)(e)(i).
> Moreover, in addition to withholding the responsive records pursuant to
> Public Officers Law § 87(2)(e)(i), the
> Department also is withholding the responsive records pursuant to Public
> Officers Law § 87(2)(a), which specifically
> exempts from disclosure records exempted by a state or federal statute.
> The applicable statutory provision is N.Y. Banking
> Law (“Banking Law”) § 36(10), which states, in pertinent part, that
> reports of examinations and investigations and
> correspondence and memoranda concerning or arising out of such
> examinations and investigations are confidential and shall
> not be made public. The statute fosters open communication between the
> Department and its regulated institutions, a
> necessity for effective regulation of financial institutions, by ensuring
> that records transmitted to the Department in
> connection with its supervision of a financial institution are protected
> from disclosure.
> The responsive records that were transmitted between Robinhood and the
> Department in connection with the
> Department’s supervision of Robinhood as a licensed money transmitter
> pursuant to New York Banking Law, constitute
> correspondence and reports concerning and arising out of an investigation
> and are, therefore, required to be kept confidential
> and exempt from disclosure under Banking Law § 36(10). The expectation
> that records transmitted to the Department will
> remain confidential is essential to encouraging candor and open
> communications between the Department, its regulated
> entities, and the entities undergoing regulatory review that submit such
> records. Release of such sensitive records, albeit
> responsive records, may have a chilling effect on the willingness of
> regulated entities to share information and cooperate
> with supervisors to resolve issues, and thus confidentiality is critical
> to the Department’s ability to perform its regulatory
> mandate and purpose. Accordingly, the exemption set forth in Public
> Officers Law § 87(2)(a) via Banking Law § 36(10)
> covers the responsive records.
> In accordance with Public Officers Law § 89(4), you may appeal this
> determination to withhold the records within
> 30 days by sending an email to FOIL.Appeals at dfs.ny.gov.
> Very truly yours,
> Stephanie Mazza
> Associate Attorney
> ---------- Forwarded message ---------
> From: <Stephanie.Mazza at dfs.ny.gov>
> Date: Wed, Feb 21, 2024, 1:26 PM
> Subject: Your Freedom of Information Law ("FOIL") Request
> FOIL-2023-095358-021587
> To: <G at xny.io>
>
>
> Dear Mr. Larson:
>
> Attached please find the Department's determination regarding the
> aforementioned FOIL request. Because your request has been answered, your
> request is now closed.
>
> Tracking Number:FOIL-2023-095358-021587
>
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