In a controversial debut, the NYC Token, a cryptocurrency initiative led by former New York City Mayor Eric Adams, has drawn significant scrutiny following a dramatic drop in the token’s value. Among the partners of this venture is Frank Carone, a trusted friend and long-time political ally of Adams, as confirmed by multiple sources.
The NYC Token faced immediate backlash after its liquidity was yanked abruptly post-launch, leading critics to suspect a “rug pull” — a term used to characterize situations where developers manipulate the market by creating hype to secure investments and then withdrawing funds. The token’s representatives have denied such allegations, claiming the liquidity withdrawal was intended to facilitate smoother trading. However, they refrained from providing further details on the matter, and the official website does not list any partners involved, despite Adams asserting that all partners would be disclosed publicly at the launch event in Times Square.
Sources indicate that Carone’s role remains unclear, particularly in terms of whether he contributed financial resources or strategic input into the project’s launch. Carone, an attorney with decades of familiarity with Adams, has not responded to several requests for clarification, and his spokesperson declined to provide additional comment.
Adding to the controversy, Eddie Cullen, a former New York City mayoral candidate, accused Adams of appropriating a proposal he presented last summer. Cullen has indicated plans to issue a cease-and-desist letter to the former mayor, threatening legal action for alleged intellectual property theft regarding the NYC Token concept.
Cullen’s communications with Adams’ team primarily took place over email and included exchanges with key administration officials, specifically tech advisor Matt Fraser. He claims to possess a presentation document outlining how the NYC Token could serve as a catalyst for economic revitalization.
The response from Adams’ team has been measured, with spokesperson Todd Shapiro refraining from commenting on the accusations made by Cullen. However, Brock Pierce, a notable figure in the crypto sphere and an ally to Adams, acknowledged the rocky rollout of NYC Token but dismissed allegations of misconduct. He noted that suspicions often arise in the crypto community due to the prevalence of scams.
In addition to Carone, reports have surfaced about another partner, Sefi Zvieli, who is connected to the entity responsible for the NYC Token’s formation paperwork. Zvieli had previously engaged Carone for legal counsel and is linked to a significant rental agreement with a city-funded nonprofit.
During the launch event, Adams discussed plans for the token’s proceeds, indicating that funding would support blockchain education initiatives and combat efforts against antisemitism and anti-Americanism. He emphasized that he would not receive a salary for his involvement with the NYC Token but highlighted his commitment to continue working on related opportunities.
Following his tenure, which ended amid several corruption scandals, including his federal indictment, this venture marks Adams’ latest attempt to remain relevant in the political landscape and navigate potential business prospects in the crypto realm. As the situation unfolds, questions remain about the future of the NYC Token and its implications for its high-profile backers.
