# Profoundd archive — Epstein Files # Bates number: EFTA01128556 # Title: Confidential # Dataset: 9 # Pages: 15 # Images: 15 detected # Tags: epstein, doj, dataset-9, image-described # Source PDF: https://profoundd.com/epstein-docs/EFTA01128556/download # Doc viewer: https://profoundd.com/epstein-docs/EFTA01128556 # # Text below is what Profoundd has extracted from the source PDF. # 'ocr-enriched' tag means OCR was applied to scan-only pages. # Image descriptions are AI-generated factual captions (llava:13b). #---------------------------------------------------------------------- === SUMMARY === 5LedgerX Series B Confidential od,..,.. Le.”I EFTA01128556 0 Bitcoin's Needs: Regulation and Volatility Management Bitcoin is a fundamentally new asset class that requires no middlemen or third-party to process transactions. ■ Bitcoin peer-to-peer network: New universal settlement layer and global open- access financial network ■ Bitcoin currency: A more efficient collateral asset Wall Street banks are scrambling to get into Bitcoin and the blockchain. But they need regulation and a way to manag === EXTRACTED TEXT === 5LedgerX Series B Confidential od,..,.. Le.”I EFTA01128556 0 Bitcoin's Needs: Regulation and Volatility Management Bitcoin is a fundamentally new asset class that requires no middlemen or third-party to process transactions. ■ Bitcoin peer-to-peer network: New universal settlement layer and global open- access financial network ■ Bitcoin currency: A more efficient collateral asset Wall Street banks are scrambling to get into Bitcoin and the blockchain. But they need regulation and a way to manage volatility. LedgerX's regulated options exchange will let institutions manage volatility. Our clearinghouse has built a bridge between Bitcoin and the traditional financial system, and regulatory approval will activate this bridge. © October 2015 LedgerX Confidential 2 EFTA01128557 The Future of Money Old Money MO: Cash in circulation M1-M2-M3: Commercial bank money lent via traditional ledgers Financial institutions manage cash volatility risk via CFTC-regulated FX trading kiCME Group Now the world SelvanCe: ice New Money MO: Bitcoin blockchain as a settlement layer M1-M2-M3: Commercial bank obligations on top of the blockchain (via sidechains, smart contracts, etc) Financial institutions manage bitcoin volatility risk by trading on LedgerX's CFTC-regulated options exchange ,LedgerX © October 2015 LedgerX Confidential atf • i'A\M "R3Cev [...J convened the April meeting at Bank of America, which was attended by more than 75 people from 15 financial institutions" — NYT article on blockchain tech EFTA01128558 Professional Investors and Speculators Want Bitcoin PANTERA U —*" secondmarket ci6 MorganStanley l'IJPIVIorganChase TIGER 0 I I: DOR SOROS Soros Fund Managemen "We see investing and trading bitcoin as one of the first major applications of crypto currency..." — Wedbush Equity Research Who they are What they want What they don't want The LedgerX Solution i-• • • • • Investment Banks Bitcoin-specific Prop Traders Macro Funds Multi-strategy Hedge Funds Family Offices • • • • • Buying Ability Shorting Ability Liquidity Market- Making Arbitrage • • • No Oversight Unexperienced Professionals Complex Banking Arrangements • • • • • • U.S. Federal Regulation U.S. Banking Trusted Clearing Safe Collateral Storage Easy API Access Experienced Governance © October 2015 LedgerX Confidential 4 EFTA01128559 M M O Hedgers Need Bitcoin Options Consumers purchase BTC using fiat 4 Consumers BTC I Merchants Expedio-d!sh. overstock.com Merchants convert BTC to fiat © October 2015 LedgerX Consumer Businesses CIRCLE coinbase I\ BTC Price Volatility Risk Payment Processors bitpay Bitnet Confidential EFTA01128560 LedgerX Approach 1 Fiat Institutions SOROS O October 2015 LedgerX KY BRIDGE lLedgerX Federal Regulator LILA- (CFTC) Confidential bitpay Genesis Bitcoin Companies CIRCLE coinbase Teo BitFury 1 BTC 6 EFTA01128561 0 Existing "Options" Mostly inferior products like binary options, cash-settled forwards, or other less-efficient hedges. Regulatory Status Institutional Access Options Expertise Clearing Expertise Bitcoin Expertise Location Coinut X X X X ✓ Singapore Bitstamp X X X X ✓ Slovenia Bitfinex X X X X ✓ Hong Kong Over-the- counter options X X X New York CME X Chicago Tera X X X New York LedgerX New York © October 2015 LedgerX Confidential 7 EFTA01128562 O LedgerX: The Trusted Solution U.S. Based U.S. Banked U.S. Regulated Experienced Operators Derivatives Trading Bitcoin Specialization © October 2015 LedgerX Confidential 8 EFTA01128563 0 Milestones Series A Formal Application Submissions: Swap Execution Facility(1) Derivatives Clearing Ore Jan 2014 May 2014 Sep 2014 It " • " LedgerX Exchange Approved. CFTC Asserts Jurisdiction Sep 2015 • CFTC• time ...the for the first finds that Bitcoin and other virtual are properly defined as commodities..." — CFTC Enforcement Action against Derivabit, Sep 17, 2015 (1) A Swap Execution Facility ("SEF") is a derivatives trading platform designation under the CFTC. A SEF license enables a company to list for trading swaps and options on currencies and / or commodities. (2) A Derivatives Clearing Organization ("DCO") is a clearing designation under the CFTC. A DCO license is the only regulated way that a company may hold customer funds and collateral in order to effect settlement and delivery for derivatives on currencies and / or commodities. © October 2015 LedgerX Confidential 9 EFTA01128564 Highly Experienced Team Board of Directors Mark Wetjen DTCC Fmr. CFTC Acting Chairman Jim Newsome Fmr. CFTC Chairman NYMEX CEO CME Board Member Tom Lewis Ameritrade CEO Green Exchange CEO Management Team Paul Chou, CEO Juthica Chou, President & Chief Risk Officer Zach Dexter, CTO Shabana Paul, CFO & COO Kari Larsen, General Counsel & Chief Regulatory Officer Maria Minguez, Chief Compliance Officer Goldman Sachs Goldman Sachs Y Combinator tutors •r Goldman Sachs >