On Monday morning, Eric Adams held a press conference near Times Square, wearing a new hat emblazoned with “$NYC” instead of his usual “NYC Mayor” cap. During the event, he announced the launch of a cryptocurrency token that he suggests could address pressing issues faced not only in New York City but across various American cities. This marked Adams’s first venture following his tenure as mayor, promoting a token intended to combat antisemitism and anti-Americanism. He expressed confidence that this investment opportunity would significantly transform the landscape.
However, by Monday afternoon, the $NYC token experienced a brief surge in value, only to plummet shortly after due to a substantial withdrawal from an account connected to its issuer. This withdrawal prompted allegations that the former mayor had orchestrated a “rug pull”—a notorious scam in the cryptocurrency realm, where a coin’s creator inflates its value only to later withdraw liquidity, leaving investors high and dry. Reports indicate that the market cap of $NYC rose to around $600 million before $2.5 million in liquidity was pulled, resulting in significant losses for at least 200 traders, with some facing losses exceeding $100,000.
While a spokesperson for Adams denied any wrongdoing, insisting he did not manipulate investor funds, representatives for $NYC described the liquidity withdrawal as part of routine market adjustments, asserting that no scam had taken place. However, blockchain data revealed that the account responsible for the $2.5 million withdrawal subsequently returned $1.5 million, raising further questions.
The obscured ownership inherent in cryptocurrency transactions complicates accountability, but former associates of Adams have expressed deep concern. Brock Pierce, a billionaire and a long-time advisor on cryptocurrency to Adams, critiqued the team behind $NYC for lacking essential experience. Jonah Allon, Adams’s former deputy press secretary, described the venture as “tawdry and unethical.”
Eddie Cullen, a former cryptocurrency advisor to Adams, has announced intentions to pursue legal action against him over the promotion of the $NYC token, claiming that he initially presented the concept to Adams last year. Cullen, who has experience in cryptocurrency and previously ran for mayor in 2021, criticized the project as being mishandled for immediate profit without a sustainable vision.
Further scrutiny of the LLC paperwork for the token has revealed that it was filed by Yosef Zvieli, a landlord and developer who has faced criticism over his management of student housing. Zvieli is alleged to have ties to Frank Carone, who previously served as Adams’s chief of staff and is thought to be involved in the token’s launch.
As of Thursday afternoon, the official $NYC account on X was continuing to issue posts that appeared to be generated by artificial intelligence, while the crypto wallet linked to the liquidity withdrawal retained a portion of the funds, prompting speculation about the owner’s intent to extract the remaining amount once public interest wanes.
In addition to the controversy surrounding the cryptocurrency, Adams recently made headlines for another incident on a flight to Dallas, where he confronted a masked woman on a jet bridge, telling her, “Go f*** yourself.” In the encounter, captured on video, Adams asserted that the “old days are over” and suggested that his Brooklyn roots would shape how he responds to criticism moving forward.
