Adams Ally Frank Carone Among Partners Behind NYC Ex-Mayor’s Controversial Crypto Token
New York City, January 16, 2026 — Frank Carone, a longtime political confidant and close ally of former New York City Mayor Eric Adams, has been identified as one of the partners involved in the launch of the ex-mayor’s contentious cryptocurrency venture, the “NYC Token,” sources close to the matter have confirmed.
The crypto token initiative has recently become embroiled in controversy following a dramatic plunge in its value after an anonymous account withdrew millions of dollars in liquidity shortly after the token’s launch. This sudden liquidity pullout sparked allegations that the project may have been a “rug pull” — a type of cryptocurrency scam where hype is created around a new token to attract investments, only for the organizers to abruptly withdraw funds and disappear.
Representatives for the NYC Token project have denied these accusations, describing the liquidity event as an “attempt to keep trading running smoothly” without providing further details. The team has also refused to disclose the identities of other participants in the initiative apart from Adams himself. Adams insisted at a press conference held in Times Square on Monday that all partners were publicly listed on the project’s website; however, no partner information was found on the site as of this writing.
Two independent sources with direct knowledge of the project confirmed to the New York Daily News on Thursday that Frank Carone is indeed among the partners involved. The precise role Carone plays and whether he has contributed capital to the venture remain unclear. Carone, an attorney who has worked alongside Adams for decades and led Adams’ unsuccessful reelection campaign, did not respond to multiple requests for comment. His spokesperson declined to comment as well.
Carone has no known background or experience in the cryptocurrency industry, intensifying questions about the token’s management.
Additional Scrutiny and Allegations of Intellectual Property Theft
The controversy expanded as Eddie Cullen, a former New York City mayoral candidate and cryptocurrency executive, accused Adams’ token project of appropriating his proposal. Cullen claims he pitched a detailed plan last summer to Adams’ team outlining how a “NYC Token™” could function as a catalyst for citywide economic revitalization.
Cullen told Fortune Magazine on Tuesday that he intended to send a cease-and-desist letter demanding that Adams withdraw the NYC Token to avoid legal repercussions over alleged intellectual property infringement. Cullen shared a pitch deck with the Daily News featuring his concept, which he said was communicated largely through email exchanges involving Adams’ chief City Hall technologist, Matt Fraser, himself a crypto enthusiast.
“We will no longer make any comments on legal strategy or next steps as we pursue exhaustive options for accountability,” Cullen stated.
Adams’ spokesperson Todd Shapiro declined to comment on Cullen’s accusations.
Broader Network Tied to NYC Token
In addition to Carone, Business Insider reported that Sefi Zvieli, a Brooklyn-based landlord, played a formal role by signing formation documents for 18 Digital LLC, the entity linked with the NYC Token’s launch. Notably, after hiring Carone as an attorney in 2021, Zvieli secured a $3.5 million rental deal with a city government-funded nonprofit managing a homeless shelter at one of his Brooklyn properties. Zvieli did not respond to requests for comment.
Prominent crypto billionaire Brock Pierce, known to be close to Adams, confirmed he reviewed the NYC Token’s underlying structure at the ex-mayor’s request following the token’s turbulent rollout. Pierce acknowledged the launch was “sloppy” but insisted no fraudulent activity took place and that liquidity funds remain within the project.
“The crypto community has been rug-pulled many times, and suspicions arise when things look shady,” Pierce said, defending the initiative.
Adams’ Post-Mayoral Plans
Eric Adams concluded his single term as mayor on December 31, a tenure marked by corruption scandals, including a federal indictment involving the former mayor himself. At the recent Times Square event promoting the NYC Token, Adams stated that part of the proceeds would support blockchain education programs and initiatives aimed at combating antisemitism and anti-Americanism.
Adams also said he does not plan to draw a salary from the crypto project “at this time” and emphasized his commitment to ongoing work under his own name, declining to engage in traditional employment.
“I will not be taking 9-to-5 salary jobs,” Adams said. “I’m going to be working for Eric Adams.” He also announced plans to travel to Texas and Senegal to explore business opportunities.
As the NYC Token saga unfolds, questions around transparency, alleged improper conduct, and the token’s future remain subjects of public and legal scrutiny.
By Chris Sommerfeldt, New York Daily News
Photograph credit: Luiz C. Ribeiro for New York Daily News