You are on page 1of 3

Case 1:19-cv-09439-PKC Document 61 Filed 01/09/20 Page 1 of 3

UNITED STATES
UNITED DISTRICT COURT
STATES DISTRICT COURT
SOUTHERN DISTRICT OF
SOUTHERN DISTRICT OF NEW
NEW YORK
YORK
------------------------------------x x
SECURITIES AND EXCHANGE
SECURITIES AND COMMISSION, ::
EXCHANGE COMMISSION,
: 19
19 Civ.
Civ. 9439 (PKC)
9439 (PKC)
Plaintiff,
Plaintiff, :
: ECF
ECF Case
Case
-against-
-against- :
: Electronically
Electronically Filed
Filed
TELEGRAM GROUP
TELEGRAM GROUP INC. and TON ISSUER
INC. and TON ISSUER :
INC,
INC, :
:
Defendants.
Defendants. :
------------------------------------x x

DECLARATION OF
DECLARATION OF EYTAN J. FISCH
EYTAN J. FISCH

I, Eytan
I, Eytan J. Fisch, declare
J. Fisch, declare under
under penalty
penalty of
of perjury
perjury that
that the
the following
following is
is true
true and
and correct:
correct:

1.
1. II am
am aa member
member of
of Skadden, Arps, Slate,
Skadden, Arps, Meagher &
Slate, Meagher & Flom
Flom LLP, attorneys for
LLP, attorneys for the
the

Defendants in
Defendants the above-captioned
in the above-captioned action
action (the
(the "Action").
Action ). II am
am an
an attorney
attorney duly
duly admitted
admitted to
to

practice in
practice in the
the District
District of
of Columbia
Columbia and
and the
the State of New
State of New York.
York.

2.
2. II respectfully
respectfully submit
submit this
this declaration
declaration in s pport of
in support of Defendants'
Defendants opposition
opposition to
to

Plaintiff s motion
Plaintiffs motion to
to compel (ECF No.
compel (ECF No. 55) and pursuant
55) and p rs ant to
to this
this Court's
Co rt s Jan ar 6,
January 6, 2020,
2020, Order
Order

(ECF No.
(ECF No. 58), relating to
58), relating to Plaintiffs
Plaintiff's request
request for
for certain banking records
certain banking records of
of Defendants
Defendants (the
(the

"Records").
"Records").

3.
3. Since
Since September 2019, II have
September 2019, overseen the
have overseen the process
process of
of reviewing and producing
reviewing and producing

certain of
certain of Defendants'
Defendants records
records in
in response
response to
to certain
certain regulatory
regulatory agency
agency requests. Many of
requests. Many of these
these

records have
records have also
also been
been produced
produced in
in connection
connection with
with the
the Action.
Action. This
This process
process has,
has, among
among other
other

things, included
things, included coordination
coordination with
with foreign
foreign counsel regarding analysis
counsel regarding analysis of
of local data privacy
local data privacy issues
issues

implicated by
implicated by the
the review,
review, and
and related
related analysis,
analysis, processing,
processing, and
and production
production of
of records.
records.
Case 1:19-cv-09439-PKC Document 61 Filed 01/09/20 Page 2 of 3

4.
4. Attorneys at
Attorneys at my
my firm have conducted
firm have conducted aa preliminary
preliminary analysis
analysis of
of aa subset
subset of
of

Records presently
Records presently available
available to
to us,
us, which
which has
has been
been reported
reported to
to me
me and
and forms the basis
forms the basis for
for the
the

analysis provided
analysis below.1
provided below.1

5.
5. Based on
Based on the
the preliminary
preliminary review
review of
of the
the Records,
Records, it appears that
it appears that there
there are
are foreign
foreign

persons identified
persons identified in the Records
in the Records and
and that
that transferring
transferring the
the Records
Records to
to the
the U.S.
U.S. for
for production
production in
in

the Action
the Action may
may implicate
implicate applicable
applicable foreign
foreign data privacy laws
data privacy laws and
and Defendants'
Defendants compliance
compliance

therewith. Preliminarily,
therewith. Preliminarily, ensuring that Defendants
ensuring that Defendants fully
fully comply
comply with
with their
their obligations
obligations under
under

foreign data
foreign data privacy
privacy laws would appear,
laws would appear, from
from the
the subset
subset of
of the
the Records
Records reviewed, to require
reviewed, to require

analysis of
analysis of approximately
approximately 4,600
4,600 transactions,
transactions, involving
involving approximately
approximately 120
120 entities and
entities and

approximately 650
approximately individuals.
650 individuals.

6.
6. This analysis
This analysis would,
would, in
in our
our experience,
experience, include determining the
include determining the jurisdiction
jurisdiction of
of

each of
each of the
the approximately
approximately 770
770 entities or individuals
entities or individuals identified
identified in the Records,
in the Records, and
and the
the nature
nature of
of

the relationship
the relationship with
with each, to assess
each, to assess the
the extent
extent to
to which
which foreign data privacy
foreign data privacy laws
laws may
may be
be

implicated. Based
implicated. Based on
on the
the preliminary
preliminary review, our team
review, our team was
was able
able to
to make
make aa preliminary
preliminary finding
fmding

as to
as to the
the jurisdiction
jurisdiction of
of approximately
approximately 76
76 of
of these
these approximately
approximately 770
770 entities or individuals.
entities or individuals.

7.
7. Those 76
Those 76 entities
entities or
or individuals
individuals for which we
for which we were
were able
able to
to make
make preliminary
preliminary

findings as
fmdings as to
to their
their jurisdiction
jurisdiction appear
appear to
to implicate
implicate 12
12 foreign
foreign jurisdictions
jurisdictions for
for which
which certain
certain data
data

privacy analysis
privacy analysis has
has already
already been
been performed
performed in
in the
the context
context of
of our
our prior
prior work
work and
and two
two foreign
foreign

jurisdictions for
jurisdictions which applicable
for which applicable data
data privacy
privacy analysis
analysis has
has not
not yet
yet been
been performed.
performed. For
For the
the

latter, and
latter, and likely
likely for
for other
other entities
entities or
or individuals
individuals in jurisdictions we
in jurisdictions we have
have not
not yet
yet had
had analyzed,
analyzed,

Defendants may
Defendants may need
need to
to engage
engage local
local counsel
counsel to
to conduct
conduct legal
legal analysis
analysis of
of related
related data
data privacy
privacy

11 This analysis encompasses


This analysis the three
encompasses the three principal
principal accounts
accounts used by Defendants
used by Defendants during
during the
the relevant time period.
relevant time period. We
We
understand that
understand that there
there may
may be
be certain additional accounts,
certain additional accounts, which
which we
we are
are still
still in the process
in the process of
of collecting.
collecting.

22
Case 1:19-cv-09439-PKC Document 61 Filed 01/09/20 Page 3 of 3

issues. After
issues. After the
the jurisdiction
jurisdiction of,
of, and
and nature
nature of
of the
the relationship
relationship with,
with, each of the
each of the counterparties
counterparties

has been
has been determined
determined and,
and, if
if required, local counsel
required, local counsel has
has been
been consulted to determine
consulted to determine how
how the
the

counterparty data
counterparty data should
should be
be handled
handled under
under relevant
relevant data
data privacy
privacy laws,
laws, further review would
further review would be
be

required in
required order to
in order to apply
apply any
any redactions
redactions that
that may
may be
be required
required to
to comply
comply with
with such
such data
data privacy
privacy

laws. The
laws. review and
The review and redaction of the
redaction of the counterparty
counterparty information
information would
would likely be conducted
likely be by aa
conducted by

third-party consultant
third-party consultant that
that specializes
specializes in such reviews.
in such reviews.

8.
8. Based on
Based on our
our experience
experience with
with the
the above
above processes,
processes, as
as well
well as
as the
the current
current

uncertainty regarding
uncertainty regarding how
how many
many different
different jurisdictions
jurisdictions may
may be
be identified through these
identified through these processes
processes

and require
and require new
new or
or additional
additional data
data privacy
privacy legal
legal analyses,
analyses, we
we estimate
estimate that
that the
the full
full review,
review,

analysis, processing
analysis, processing and
and production
production of
of the
the Records
Records would
would require approximately 5-7
require approximately weeks to
5-7 weeks to

complete.
complete.

Executed on: Washington,


Executed on: Washington, D.C.
January
January 9,
D.C.
2020
9, 2020 g-him
g. .."------
________________________
Eytan
an J. Fisch
J. Fisch

33