Inside the Botched Launch of Ex-NYC Mayor Eric Adams’ New Crypto Token
By Jake Offenhartz, Associated Press
January 15, 2026
New York — Former New York City Mayor Eric Adams found himself at the center of controversy following the chaotic launch of his new cryptocurrency token, dubbed the NYC Token, which he promoted as a tool to combat antisemitism and anti-Americanism.
On Monday, Adams, now out of office, returned to Times Square with high hopes for his first private-sector venture: a digital asset he pledged would “change the game” and support important social causes. However, the launch quickly unraveled in what some crypto experts are calling a “rug pull,” a deceptive tactic common in celebrity-backed meme coins where insiders hype an asset before rapidly selling off, leaving ordinary investors with huge losses.
A Dramatic Rise and a Free Fall
The NYC Token soared rapidly to nearly a $600 million valuation within minutes of going public, a meteoric rise fueled largely by hype and early investor interest. But the momentum did not last. By the end of the day, the token had plummeted nearly 75% in value.
Crypto analytics firm Bubblemaps revealed that an account linked to the token’s creation withdrew approximately $2.5 million worth of coins shortly after the launch. Although roughly $1.5 million was reportedly returned later, investor confidence had already taken a major hit.
Questions of Competence and Allegations of a Rug Pull
Observers in the cryptocurrency community debated what went wrong. While some suggested Adams and his team lacked experience and were possibly manipulated by more knowledgeable investors, others raised suspicions of an intentional rug pull — a move that would result in substantial losses for everyday investors.
Adams, through his former campaign spokesperson Todd Shapiro, has denied any wrongdoing. Shapiro stressed that Adams did not personally profit from the token and maintained that reports claiming otherwise were “false and unsupported by evidence.” He attributed the token’s volatility to typical market conditions faced by new digital assets, highlighting Adams’ commitment to “transparency, accountability, and responsible innovation.”
Despite these reassurances, Adams has yet to disclose the names of his partners involved in creating the token.
Key Players Behind the Scenes
Two sources familiar with the project, speaking on condition of anonymity, confirmed that Frank Carone, Adams’ former chief adviser and lawyer associated with Brooklyn’s Democratic Party, played a significant role in the launch. Another individual involved was Yosef Sefi Zvieli, a real estate investor with ties to Israeli hotels, whose participation was first reported by Business Insider.
Zvieli, who garnered negative attention for operating a poorly maintained Brooklyn college dorm before converting it into a city-supported homeless shelter with Carone’s legal assistance, reportedly helped contact social media influencers ahead of the NYC Token’s debut. However, neither Carone nor Zvieli has any known background in cryptocurrency. Attempts to reach them for comment went unanswered.
Seeking Expert Advice Amid Fallout
Facing scrutiny and questions, Adams enlisted the help of Brock Pierce, a billionaire crypto investor and former child actor, who sometimes provided private jet service during Adams’ mayoral tenure. Pierce reviewed the project and expressed confidence that “no one has run off with anyone’s money.”
However, Pierce noted he only learned about the token after its launch and would have chosen a more qualified team if consulted beforehand. Even among crypto insiders, projects affiliated with politicians often suffer from dubious trading practices — a pattern seen with initiatives linked to figures like Argentina’s President Javier Milei and former U.S. President Donald Trump and his wife Melania.
Investor Impact and Murky Promises
Bubblemaps data shows less than 5,000 accounts invested in the NYC Token—far fewer compared to other political coins—but about 80% of those purchased within a short 20-minute window before Adams’ formal announcement. This timing likely benefited insiders and well-informed traders at the expense of ordinary investors.
The token’s official website states that a portion of proceeds will support three causes: campaigns raising awareness about antisemitism and anti-Americanism, crypto education for New York City youth, and scholarships. However, it fails to specify which organizations will receive funds or what percentage will be allocated to charity.
Adams has disputed that any funds were withdrawn improperly, noting that withdrawals were executed by the designated market maker—a company managing buy and sell orders to stabilize prices. FalconX, a known digital asset broker involved, declined to comment publicly.
The Road Ahead: Damage Control and Uncertainty
As of mid-January, most NYC Token investors had suffered losses, with 15 individuals down at least $100,000 each. On the other hand, 10 investors reportedly made gains of $100,000 or more.
Pierce remains cautiously optimistic about the project’s potential, saying its “fate and outcome will be determined in the coming days.” Crypto experts, however, remain skeptical.
“It could be a legitimate project with just a really bad rollout,” said Benjamin Cowen, founder of crypto analytics firm Into the Cryptoverse. “But the way it was launched didn’t instill a lot of confidence. It’s hard to regain trust in the crypto community.”
For Eric Adams, who spent much of his mayoral term managing crises and public criticism, the botched introduction of the NYC Token represents a new and complex chapter, one that raises questions about transparency, competence, and the risks of mixing politics with volatile digital assets.
Related Topics: New York, Cryptocurrency
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