Mayor Eric Adams’s push for a Bitcoin-backed municipal bond faces strong opposition from Comptroller Brad Lander, who found the plan "legally dubious and fiscally irresponsible." New York City Comptroller Brad Lander has criticized Mayor Eric Adams’s proposal to issue municipal bonds backed by Bitcoin, warning that such a move would introduce financial risk and undermine investor confidence. In a May 29 statement, Lander said he would not allow the New York City to issue the crypto-tied debt instrument while he is in office. Lander’s office shares responsibility for debt issuance with the Mayor’s Office of Management and Budget. “Cryptocurrencies are not sufficiently stable to finance our City’s infrastructure, affordable housing, or schools,” the comptroller said, adding that the proposal exposes the city ”to new risks and erode bond buyers’ trust.” Read more
The payouts to FTX creditors have sparked both controversy and speculation that the payouts could be reinvested back in the crypto markets. The FTX Recovery Trust has initiated a second round of payments to its creditors. On May 30, the Trust started a $5 billion payout to eligible creditors in the Convenience and Non-Convenience Classes who have completed the pre-distribution requirements. According to a May 28 announcement, the creditors’ distribution will include Dotcom Customer Entitlement Claims, which are receiving a 72% distribution; US Customer Entitlement Claims, which are receiving a 54% distribution; and Convenience Claims, which will receive a 120% distribution. Additionally, General Unsecured Claims and Digital Asset Loan Claims will each receive a 61% distribution as per the reimbursement plan. Recipients should receive their claims in one to two business days from the official distribution partners, Kraken and Bitgo. Read more