Tuesday, February 4, 2025

MAYOR ADAMS DELIVERS TESTIMONY TO NEW YORK STATE SENATE LOCAL GOVERNMENT/GENERAL GOVERNMENT, FINANCE, AND NEW YORK STATE ASSEMBLY WAYS AND MEANS COMMITTEE

 

New York City Mayor Eric Adams today provided testimony to the New York State Senate Local Government/General Government, Finance and the New York State Assembly Ways and Means Committees, focusing on the administration’s agenda in Albany as Mayor Adams works to make New York City the best place to raise a family. Mayor Adams, today, asked for the state Legislature’s help in passing his “Axe the Tax for the Working Class” legislation that will eliminate and cut New York City personal income taxes for working-class New Yorkers, passing the “Supportive Interventions Act” to finally allow people with severe mental illness to get the lasting support they need, and passing measured reforms to the discovery law that will continue to protect defendants’ rights, while improving the efficiency of the criminal justice system. Finally, Mayor Adams outlined the city’s strong fiscal management and fiscal challenges, including state funding for asylum seekers, while asking for continued financial support to manage the international asylum seeker crisis that has landed at the city’s front door. 

  

Below are Mayor Adams’ remarks as prepared for delivery: 

  

Thank you, Chairs Krueger, and Pretlow, Cities Chairs Sepúlveda and Burke, Local Government Chairs Martinez and Jones, and members of the Assembly Ways and Means and Senate Finance committees.   

 

My name is Eric Adams, and I am the mayor of the City of New York.   

 

I’m proud to be here today with Jacques Jiha, director of our Office of Management and Budget, First Deputy Mayor Maria Torres-Springer, Deputy Mayor for Intergovernmental Affairs Tiffany Raspberry, and former state senator and Senior Advisor to the Mayor Diane Savino.  

  

Since day one of our administration, our mission has been to make New York City a safer, more affordable city that is the best place to raise a family.   

  

While we have more to do, we have made significant progress. 

  

Crime is down on our streets and in the subways. In 2024, homicides and shootings reduced for the third consecutive year — and are both down double digits since we came into office.  

 

What’s more, our January crime statistics are now out, and for the second month in a row, overall crime in our city is down by double digits.   

 

Last month, crime was down 17 percent above ground and 36 percent below ground.    

 

Shootings were also down 22 percent last month — continuing the steady decrease we’ve seen as we have taken over 20,000 illegal guns off our streets. 

  

We currently have an all-time high number of jobs in our city and broke the record for the most jobs in New York City’s history eight times over the course of our administration.  

  

And — this is important — unemployment has dropped in all demographics, with Black and Hispanic both down more than 20 percent since we came into office. 

  

These achievements would not be possible without our strong fiscal management.  

  

We have delivered three balanced budgets; The nation’s leading, independent, credit rating agencies have affirmed our strong fiscal standing; And our most recent preliminary budget includes the largest-ever capital plan for housing, infrastructure, schools, libraries, and more.  

  

Last year, we worked closely with you and the governor to make progress on every single one of our legislative priorities.  

  

Together, we passed historic legislation that protects tenants and gives our city new tools to build the affordable housing needed to tackle a generational housing crisis; 

  

We won mayoral accountability for the second time.  We gained legal authority to close illegal cannabis shops, which has led to shutting down over 1,300 illegal shops through ‘Operation Padlock to Protect;   

 

We passed legislation on red-light cameras and e-bikes to keep our streets safe; 

  

And, all this builds on our past work, in partnership, to: 

  

Expand the Earned Income Tax for the first time in 20 years that has now put more than $345 million back in the pockets of New Yorkers, allocate aid to the unprecedented international humanitarian crisis we face together, and so much more. 

  

That is why I am here today to talk about our shared priorities and how we plan to work with the Legislature to, once-again, deliver for working-class people.   We are seeking support in four key areas: 

  

  •   First, passage of our “Axe the Tax for the Working Class” legislation to make life more affordable for working-class New Yorkers. 

  

  •   Second, passage of the “Supportive Interventions Act” to finally allow people with severe mental illness to get the lasting support they need.  

  

  •   Third, passage of measured reforms to the discovery law that will continue to protect defendants’ rights, while improving the efficiency of our criminal justice system and keeping our city safe. 

  

  •   And, finally, continued financial support to manage the international asylum seeker international crisis that has landed at our city’s front door.  

  

More specifically, our administration is committed to making our city more affordable and has taken historic measures to do just that. 

  

Last year, we celebrated back-to-back record-breaking years for producing and connecting New Yorkers with new, affordable homes.  

  

We also passed our “City of Yes for Housing Opportunity” plan — the most significant pro-housing reform in our city’s history.

 

And, with Governor Hochul and the state’s support, “City of Yes” will invest 5-billion-dollars.    

 

These investments, combined with our generational zoning reforms, will create over 80,000 new homes over the next 15 years across every neighborhood in the five boroughs. 

  

Working-class New Yorkers must also be able to afford groceries, medicine, transportation, and other necessities. Every penny counts for our families. 

  

To help them, we have put more than $30 billion back into the pockets of working-class people.  

  

Over the next three years, we will cancel over $2 billion in medical debt for over half a million of our city’s residents.  

  

But there is much more we can do to build on this progress.  

  

That is why, today, I am asking you to support our “Axe the Tax for the Working Class” plan that would eliminate or cut city personal income taxes for low-income New Yorkers.  

  

At a moment when our state faces a historic affordability crisis, this bold action will generate an average benefit of $350, putting a total of more than $63 million back into the pockets of low-income families, and help more than 582,000 filers and their dependents.  

  

As I’ve said over and over, public safety is the prerequisite to prosperity.  

  

We are providing even more support for New Yorkers living on the streets and in the subways, including those struggling with serious mental illness, and those at risk of entering city shelters through a historic $650 million plan.  

  

We are adding 900 more Safe Haven beds and 100 Runaway Homeless Youth beds to protect our most vulnerable. We have also restored all of the psychiatric beds in our public hospital system that were closed during the pandemic.  

  

We are launching our “Bridge to Home” program, an innovative model to provide homeless New Yorkers with serious mental illness the intensive support they need after discharge from a hospital, to break the cycle of returning to the streets. 

  

Our administration has already moved 2,800 people from streets and subways to permanent housing, and we have launched outreach programs, such as SCOUT and PATH, which bring law-enforcement and trained clinical professionals onto our subway system to get people the help they need.   

  

I have been very clear: our subways are not a hospital and the days of ignoring people in need are over. 

  

That is why it is time to enact the Supportive Interventions Act, which clarifies that a person requires hospitalization if mental illness is preventing them from meeting their basic human needs of food, clothing, shelter, or medical care. 

  

It will also help ensure people remain hospitalized until they are truly ready for discharge and receive “assisted outpatient treatment” afterwards if they need that level of ongoing support.  

  

We are grateful for the governor’s embrace of many of these proposals and look forward to working with you to pass meaningful reforms this year.  

  

Next, we also must do more to ensure repeat offenders are truly held accountable and keep our communities safe.  

  

Well-meaning criminal justice reform has led to an unintended consequence. This includes dismissals of cases due to minor violations of burdensome discovery rules, also causing remaining cases to take longer, leading people to linger on Rikers Island longer.   

  

We ask you to support an approach that balances a defendant’s rights with the smooth functioning of our criminal justice system, speeding along cases and preventing needless technical dismissals.  

  

This will help us reduce our jail populations and keep our people safe.   

  

Finally, as I have said many times, no city should have to shoulder the costs of an international humanitarian crisis on its own.

 

Our Fiscal Year 2026 Preliminary Budget is balanced and includes $2.4 billion in savings in this fiscal year and the next related to the decline in migrant arrivals over the past 31 weeks.  

  

This trend is due to the steps we have taken to put more than 184,000 migrants on the path to self-sufficiency, and federal border policies we had advocated for.  

  

These measures helped reduce the number of asylum seekers in our care from a high of 69,000 in January 2024 to less than 47,000 today. 

  

However, we have still spent more than $6.9 billion to care for the immigrants over just three fiscal years and anticipate spending billions more in the years to come. 

  

While we appreciate the contributions the state has made, we urge you to include asylum seeker funding for the city in the state enacted budget. 

  

Without your help, we will have to close a $1.1 billion budget shortfall for this program within 12 weeks and ask for the state’s assistance to do so.  

  

This is on top of the costs of complying with new state budget provisions that will cost New York City taxpayers $165 million more annually for MTA needs and $347 million from lower-than-expected Foundation Aid. 

  

To conclude, we appreciate the successful legislative session we had together last year, and in the two years prior, and the resources you have directed to New Yorkers. 

  

From housing reform to mayoral accountability, to increasing our debt capacity so we can continue to build the New York City of the future, your partnership has helped this city prosper and thrive. 

  

We have high hopes for this year as well.  We are looking forward to working with you as we fight to make New York a safer, more affordable city, and the best place to live and raise a family for generations to come.  

  

Thank you, and I look forward to answering your questions. 

DHS Agencies Support Super Bowl LIX Security

 

Continuing a 20+ Year Partnership, More Than 690 DHS Employees Work to Protect Estimated 73,000 Fans Attending the Big Game 

Department of Homeland Security Secretary Kristi Noem traveled to New Orleans this week to observe DHS security operations for Super Bowl LIX. More than 690 employees representing 12 DHS agencies are in New Orleans, providing air security resources; venue, cyber, and infrastructure security assessments; chemical, biological, radiological, nuclear, and explosives detection technologies; intelligence analysis and threat assessments; intellectual property enforcement; and real-time situational awareness reporting as part of a 20-year partnership with the National Football League and state and local law enforcement.

“Around 100,000 people will be celebrating the Super Bowl in and around the Superdome in New Orleans this weekend,” said Secretary Noem. “We will give law enforcement every resource they need to ensure a safe event. Thank you to our partners, Governor Landry, Mayor Cantrell and the New Orleans Police Department. If you see something, say something!”

“Since day one, we have stood steadfast in our mission: to protect what matters most,” said Eric DeLaune, Homeland Security Investigations (HSI) New Orleans Special Agent in Charge and lead federal coordinator for Super Bowl LIX. “From securing critical infrastructure to providing real-time threat analysis, we are committed to safeguarding our communities. With over 690 DHS personnel deployed, we bring cutting-edge security resources and technologies to ensure every aspect of this event is protected.” 

DHS has assessed this year’s Super Bowl as a Special Event Assessment Rating (SEAR) Level 1 event. For more information, visit the SEAR Fact Sheet webpage. Although no specific, credible threats related to this year’s game have been identified, the U.S. remains in a heightened threat environment, as evidenced by the recent terror attack in New Orleans on New Year’s Day.

DHS security efforts for Super Bowl LIX include the following:

  • U.S. Customs and Border Protection’s (CBP): Air and Marine Operations (AMO) will enforce temporary flight restrictions around Caesars Superdome, providing “eye in the sky” intelligence, surveillance and reconnaissance flight operations in and around key venues, including the Superdome, airport, Bourbon Street and the Ernest N. Morial Convention Center. Additionally, CBP will provide video surveillance capabilities and non-intrusive inspections by scanning the cargo entering the stadium for contraband such as narcotics, weapons, and explosives. CBP will also work to intercept counterfeit NFL merchandise such as NFL jerseys, championship rings, T-shirts, caps and all sorts of souvenirs and memorabilia, which are often used to fund criminal organizations.
  • Homeland Security Investigations (HSI): An HSI Special Response Team is standing by to provide interior stadium tactical support, and HSI’s special agents will support will also CBP, local law enforcement agencies, and other private partners in identifying an investigating any flea markets, retail outlets, street vendors and online marketplaces selling counterfeit goods during the week leading up to the Super Bowl to protect consumers, who are expected to spend over $16.5 billion nationwide. HSI will also oversee the coordination of DHS assets with local, state, and federal law enforcement agencies to ensure essential public safety measures and resources are in the right place, at the right time. 
  • Cybersecurity and Infrastructure Security Agency (CISA): On Super Bowl Sunday, CISA will also deploy advisors and emergency communications coordinators to support local law enforcement, emergency responders, and private partners in New Orleans. Ahead of the event, the agency conducted physical and cybersecurity vulnerability assessments, planning exercises, and bomb safety workshops with state and local partners. 
  • Office of Intelligence &Analysis (I&A): I&A worked with the Federal Bureau of Investigation (FBI) to assess the threat landscape leading up to the Super Bowl, including sharing timely and actionable information and intelligence with their state and local partners.
  • Countering Weapons of Mass Destruction Office (CWMD): CWMD provided surge support from its Mobile Detection Deployment Program and its BioWatch program in coordination with the City of New Orleans.
  • U.S. Coast Guard (USCG): USCG Pacific Strike Team is supporting the Mobile Detection Deployment Program to bolster DHS’s ability to detect and interdict chemical, biological, radiological, and nuclear threats, and Canine Explosive Detection teams will support the safety and security of the event.
  • Transportation Security Administration (TSA): A TSA Supervisory Federal Air Marshal will staff the Fusion Watch Center during the event, and will use its National Deployment Force to increase the number of transportation security officers working at Louis Armstrong New Orleans International Airport to screen the increased number of departing passengers after the Super Bowl. TSA’s explosive detection canines and Visible Intermodal Prevention and Response (VIPR) teams will also work during Super Bowl week events at key venues.
  • Science & Technology Directorate (S&T): S&T will deploy easy-to assemble, expandable security barriers that can be installed quickly to provide critical asset protection and intrusion prevention.
  • Federal Emergency Management Agency (FEMA): FEMA will help keep fans safe by providing communication tools for state and local responders.
  • DHS Blue Campaign: This public awareness campaign is disseminating digital and out-of-home advertising in the New Orleans area to raise human trafficking awareness among visitors, local residents, and those working in industries, such as hotels, hospitality, and transportation, where frontline employees are more likely to be in a position to identify and report human trafficking. The campaign’s Blue Lightning Initiative is also partnering with Louis Armstrong New Orleans International Airport to raise awareness and train staff to recognize and report human trafficking.

DHS reminds the public that “If You See Something, Say Something®” is more than a slogan. It is a call to action to report suspicious terrorism-related activity. Follow DHS’s security efforts on X: @DHSgov.

Canadian National Charged With Stealing Approximately $65 Million in Cryptocurrency From Two DeFi Protocols

 

Defendant Exploited Vulnerabilities in the KyberSwap and Indexed Finance Decentralized Finance Protocols to Steal from Investors

An indictment was unsealed in federal court in Brooklyn charging Andean Medjedovic with wire fraud, computer hacking and attempted extortion for stealing approximately $65 million in cryptocurrency from the KyberSwap and Indexed Finance decentralized finance (DeFi) protocols, which are sophisticated financial platforms residing on cryptocurrency blockchains.  Medjedovic is also charged with laundering the proceeds of the theft.  He is currently at large.

John J. Durham, United States Attorney for the Eastern District of New York; Antoinette Bacon, Supervisory Official of the Justice Department’s Criminal Division; Harry T. Chavis, Jr., Special Agent in Charge, Internal Revenue Service Criminal Investigation, New York (IRS-CI); James E. Dennehy, Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office (FBI); and William S. Walker, Special Agent in Charge, Homeland Security Investigations New York (HSI) announced the indictment.

“As alleged, the defendant executed a highly sophisticated scheme to exploit two decentralized finance protocols and steal tens of millions of dollars’ worth of cryptocurrency from investors,” stated United States Attorney Durham.  “My Office remains at the forefront in prosecuting cutting-edge cases involving new and emerging technologies, demonstrating our commitment to protecting all financial markets, including the digital assets markets.  Criminals like the defendant who take advantage of new technologies to harm investors will be held accountable no matter where in the world they carry out their schemes.”   

Mr. Durham expressed his appreciation to the United States Securities and Exchange Commission’s Crypto Assets and Cyber Unit for their valuable assistance during the investigation. 

“This was a sophisticated fraud that exploited vulnerabilities in ‘smart contracts’, resulting in the theft of millions of dollars in cryptocurrency,” stated IRS-CI New York Special Agent in Charge Chavis.  “It’s alleged that Medjedovic executed a hack that stole nearly $65 million in crypto between two schemes, leaving liquidity pool investors in the red.  In investigating this case, IRS-CI New York’s Cyber group worked closely with its federal partners while leveraging resources from IRS-CI’s Cyber Attaché at Europol and the J5 Cyber Group. Even with the complexities of DeFi, we tracked down who is responsible for this large-scale theft, and he is now a wanted man.”

“Hackers can at times be painted in a flattering light by pop culture, some admiring their skills and acumen. They're stealing money that isn't theirs, and they're breaking the laws of this country. We allege Andean Medjedovic violated several of those laws, and he, along with all the other cyber criminals who believe they're untouchable, will face justice,” stated FBI Assistant Director in Charge Dennehy.

“These charges are a result of HSI New York’s determination to disrupt Andean Medjedovic’s alleged sophisticated far-reaching transnational cybercrime and seek justice for the millions of dollars syphoned from financial platforms,” stated HSI New York Special Agent in Charge Walker.  “Our global reach, experience and extensive knowledge of the cyber domain allow us to rapidly develop investigations into bad actors who seek to exploit the cryptocurrency market. Our federal partnerships across the globe made this investigation a success to include support from the HSI attaché offices in the Netherlands.”

KyberSwap and Indexed Finance were developers of automated market-making services called “liquidity pools” that allowed users to swap cryptocurrency tokens with each other.  The liquidity pools were managed by computer code called “smart contracts” and relied on investor contributions of cryptocurrency.  As alleged, Medjedovic used manipulative trading to exploit vulnerabilities in the KyberSwap and Indexed Finance smart contracts. These manipulative trades enabled Medjedovic to drain approximately $65 million in cryptocurrency that belonged to investors from the KyberSwap and Indexed Finance liquidity pools.

The KyberSwap Exploit

As alleged in the indictment, in 2023, Medjedovic planned and executed a scheme to exploit vulnerabilities in the KyberSwap protocol.  KyberSwap was a DeFi protocol and developer of liquidity pools on several public blockchains, including the Ethereum and Arbitrum networks. Liquidity pools use user-contributed cryptocurrency to facilitate trading and market-making in cryptocurrencies. The KyberSwap liquidity pools were managed by computer code or “smart contracts” called automated market makers or “AMMs,” which set prices in the KyberSwap liquidity pools.

In November 2023, Medjedovic exploited vulnerabilities in the KyberSwap computer code to drain the KyberSwap liquidity pools.  Medjedovic used hundreds of millions of dollars in borrowed cryptocurrency to create artificial prices in the KyberSwap liquidity pools.  Medjedovic then calculated precise combinations of trades that would cause the KyberSwap AMM to “glitch,” in his words, allowing him to steal tens of millions of dollars in cryptocurrency from the liquidity pools. In total, Medjedovic stole approximately $48.8 million in investors’ cryptocurrency from 77 KyberSwap liquidity pools on six public blockchains.

Following the exploit, Medjedovic attempted to extort the developers of the KyberSwap protocol, as well as KyberSwap’s investors and the members of the de-centralized autonomous organization or “DAO” that governed the KyberSwap protocol.  Medjedovic demanded control of the KyberSwap protocol and the KyberSwap DAO in exchange for which he would return approximately 50% of the cryptocurrency that he had stolen.

Medjedovic also attempted to launder the proceeds of his theft, including through “bridge” protocols used to transfer cryptocurrency from one blockchain to another, and through a cryptocurrency “mixer” used to conceal the source of digital assets. After one bridge protocol froze several of his transactions, Medjedovic agreed to pay an undercover law enforcement agent posing as a software developer approximately $80,000 to circumvent the bridge protocol’s restrictions and release approximately $500,000 in stolen cryptocurrency.

The Indexed Finance Exploit

As alleged in the indictment, Medjedovic committed a similar exploit of the Indexed Finance DeFi protocol.  Indexed Finance liquidity pools are referred to as “index pools,” and function similarly to a mutual fund or exchange-traded fund in traditional finance.  Instead of holding a basket of traditional equities, the index pools held an index of digital tokens contributed by users.

In October 2021, Medjedovic used manipulative trading to exploit two Indexed Finance liquidity pools on the Ethereum network.  Medjedovic used hundreds of millions of dollars in borrowed cryptocurrencies to distort a process called “re-indexing,” which was used by the Indexed Finance smart contracts to add a new token to the liquidity pools.  Medjedovic used the borrowed cryptocurrency to engage in manipulative trading to cause the Indexed Finance smart contracts to set artificial prices during the re-indexing process.  He then stole approximately $16.5 million in investor cryptocurrency from the liquidity pools.

Beginning after the Indexed Finance exploit, in or around 2022, Medjedovic conspired with another person to launder the proceeds of his illegal conduct through cryptocurrency exchange accounts that were opened using false information, and by using a cryptocurrency mixer.  Among other things, Medjedovic maintained a step-by-step playbook for moving large amounts of cryptocurrency through the mixer, which he titled a “moneyMovementSystem.” In other documents, Medjedovic discussed circumventing “know your customer” or “KYC” procedures and using cryptocurrency exchange accounts opened with false KYC information for “hacks and cashing out.”

The charges in the indictment are allegations and the defendant is presumed innocent unless and until proven guilty.                    

The government’s case is being handled by the Office’s Business and Securities Fraud and National Security and Cybercrime Sections, with the Justice Department Criminal Division’s National Cryptocurrency Enforcement Team (NCET). Assistant U.S. Attorneys Nick M. Axelrod and Andrew D. Reich of the Eastern District of New York and NCET Trial Attorney Tian Huang of the Criminal Division’s Fraud Section are prosecuting the case with assistance from Paralegal Specialists Liam McNett and Madison Bates.  SEC Enforcement Attorney Daphna A. Waxman, formerly a member of the NCET, provided significant assistance.

Valuable assistance was provided by the Justice Department’s Office of International Affairs.  The Office thanks the Netherlands’ Public Prosecution Service and the Dutch National Police’s Cybercrime Unit in The Hague and United States Customs and Border Protection, New York Field Office.