---------- Forwarded message --------- From: Gunnar Larson <g...@xny.io> Date: Thu, Mar 7, 2024, 6:50 AM Subject: Re: Your Freedom of Information Law ("FOIL") Request FOIL-2023-095358-021587 - Robinhood BitLicense Records Appeal - NY-DFS To: Mazza, Stephanie (DFS) <stephanie.ma...@dfs.ny.gov> Cc: Reader, Shaun <srea...@curtis.com>, <letitia.ja...@ag.ny.gov>, Harris, Adrienne A (DFS) <adrienne.har...@dfs.ny.gov>, < recordsaccessoffi...@dfs.ny.gov>, <cypherpu...@cpunks.org>, Dean, Peter C (DFS) <peter.d...@dfs.ny.gov>
Dear Ms. Mazza: This is a friendly reminder xNY.io - Bank.org will not rest until we conclude the BitLicense RICO concern. Can we please receive an update on our dignified Robinhood records request appeal? Have a great day. Thank you, Gunnar -- Gunnar Larson xNY.io - Bank.org 917-580-8053 On Tue, Feb 27, 2024, 6:43 AM Gunnar Larson <g...@xny.io> wrote: > 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...@xny.io > +1-917-580-8053 > New York, New York 10001 > > > On Wed, Feb 21, 2024, 2:21 PM Gunnar Larson <g...@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...@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.appe...@dfs.ny.gov. >> Very truly yours, >> Stephanie Mazza >> Associate Attorney >> ---------- Forwarded message --------- >> From: <stephanie.ma...@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...@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 >> >