Amidst controversy, "Bitcoin Mayor" Eric has orchestrated another crypto scam.

Author: Zen, PANews

“We’re about to change the game, this thing is about to take off!”

On January 12th, Eastern Time, Eric Adams, less than two weeks after stepping down as mayor of New York City, stood in Times Square, New York, facing five or six reporters, excitedly launching a cryptocurrency called “NYCToken” to the public.

This digital token, touted as being designed to “combat the spread of anti-Semitism and anti-Americanism,” saw its market value soar to nearly $600 million within minutes of its launch. However, the euphoria was short-lived; NYCToken quickly plummeted by over 75%, shrinking its market value to less than $100 million, causing a public outcry.

A series of unusual on-chain fund movements were exposed, quickly turning Adams’ first campaign rally after leaving politics into a farce riddled with doubts.

**Soaring and Crashing: The Story of the "NYCToken" Alleged "Rug Pull"** December 2025 was a comfortable final month for Eric Adams as mayor of New York City. He could use his position to travel extensively, fulfilling his childhood dream of traveling the world. Accused of suffering from "mayor retirement syndrome," Adams visited Albania, Israel, and Uzbekistan, and flew to New Orleans to accept an award from the "Anti-Anti-Semitism Movement." Critics accused Adams of shirking his government duties and abusing publicly funded travel opportunities to prepare for his next job. Adams himself did not deny considering overseas job opportunities, vaguely telling reporters, "Many people want me to work in other countries." But clearly, Adams, who prides himself on his "Brooklyn spirit," can't shake his New York connection. Now out of office, after a trip to Congo and Dubai, he returned to Times Square to ambitiously announce his first major undertaking as an ordinary citizen—NYCToken, a community currency touted as the "digital heartbeat" of New York City. Adams stated that proceeds will be used in part to "curb anti-Semitic and anti-American propaganda," provide crypto education for New York youth, and support scholarship programs. “Walmart is using blockchain technology to manage its food supply chain and improve transparency. We know cities can function better, and through NYCToken, we will continue to invest in making our cities safer.” Adams was vague about the project details and specific implementation. According to his statements and official project information, this ambitious plan can be summarized as follows: profits from “NYCToken” will go to an unnamed non-profit organization to fund groups combating anti-Semitism. Adams also stated that he is “not currently receiving a salary” and that any such decisions made in the future will be announced. After his cryptocurrency debut, Adams immediately flew to Dallas. Upon disembarking, Adams had an argument with a female passenger who booed him. Facing the foul-mouthed passenger, the 65-year-old Adams responded forcefully: “Get lost, you’ll see the Brooklyn spirit in me!” Videos recording this incident have sparked widespread attention and discussion on social media. The story of Adams' NYC Token in the cryptocurrency world is even more dramatic. Within minutes of its launch, the NYC Token's valuation soared to nearly $600 million, only to plummet afterward, losing over 80% of its value that very night. This anomaly alerted on-chain detectives, and crypto analytics firm Bubblemaps quickly released an investigation, stating that the crash was due to an account associated with the token's creation withdrawing $2.5 million worth of tokens. After the price dropped by 60%, the account then added approximately $1.5 million worth of USDC back in. According to Nicolas Vaiman, founder of Bubblemaps, as of January 15th, the total number of accounts investing in NYC Token slightly exceeded 4,000, with approximately 80% of these accounts purchasing within 20 minutes of the token officially opening for sale. Vaiman stated that this window provided an advantage for insiders involved in the token issuance and other traders closely monitoring the new token. Most accounts investing in the cryptocurrency suffered losses: 15 traders lost at least $100,000, while 10 traders netted $100,000. Beosin analysis suggests that after withdrawing $2.37 million in liquidity, the issuer continued to buy, but only returned approximately $1 million, leaving $1.33 million still held in the issuer's address. Afterward, the token price remained stagnant. According to CMC data, as of January 16, the NYCToken price was approximately $0.133, with a circulating market capitalization of approximately $10.6 million and an FDV of approximately $133 million. [Image of NYCToken price and FDV] Faced with overwhelming skepticism, on January 14, Adams, through his former campaign spokesperson Todd Shapiro, issued multiple statements clarifying that he had not profited from the token, nor had he transferred investor funds, and stated that other reports were false and unsupported by evidence. Spokesperson Shapiro stated, "Like many newly launched digital assets, NYCToken has experienced market volatility. Mr. Adams has consistently emphasized transparency, accountability, and responsible innovation." Denying wrongdoing and attacking the media, Adams is once again employing two of his signature tactics from his mayoral term. Despite proclaiming transparency, Adams has so far refused to disclose his partners in issuing NYCToken. He has only told the media that his cryptocurrency mentor, Brock Pierce, co-founder of Tether, was not involved in the project. Pierce stated that he only learned of this after the project started, adding, "If they had consulted me beforehand, I would have assembled a more professional and knowledgeable team." According to the Associated Press, two people close to the project confirmed that Frank Carone, Adams' former chief advisor and a former Brooklyn Democratic lawyer, was deeply involved in the token issuance. Adams' spokesperson, Shapiro, also confirmed to the Associated Press that Yosef Sefi Zvieli, a former client of Carone and a real estate investor with ties to several Israeli hotels, was also one of the project's creators. However, neither Carone nor Zvieli, these two key figures, had previously demonstrated direct experience in cryptocurrency, and their specific roles in the token issuance are not yet fully clear. It is known that Zvieli's role included contacting influential figures before the token issuance. Adams denied that the NYCToken creators had withdrawn any funds, arguing that the withdrawals were the result of adjustments made by designated market makers responsible for order booking new tokens to ensure traders could buy without causing significant price volatility. NYCToken's market makers include the well-known digital asset brokerage FalconX, which has declined to comment formally.

Speculation surrounding this farce can be broadly categorized into three viewpoints.

Firstly, NYCToken is a typical "rug pull," where insiders manipulate an asset, inflate its price, and then quickly sell it off. This practice is commonplace in the industry, only the timing of the "cash grab" differs.

Secondly, some believe that Adams and his inexperienced team may have been deceived by the more shrewd masterminds behind the scenes, with Adams, on the front lines, merely a victim being used.

Another speculation is that NYCToken was simply a conduit for Adams to receive bribes. Those who hold this view find it hard to believe that anyone would be foolish enough not to recognize such an obvious scam. However, under related tweets posted on Adams's X account, one can still see what appears to be investors demanding refunds and compensation for their losses.

The Controversial "Bitcoin Mayor"

Adams' passion for cryptocurrency is long-standing, even one of the hallmarks of his public image. After winning the New York City mayoral election in 2021, he immediately announced upon taking office that he would make New York the "Cryptocurrency Capital of the World," and fulfilled his promise to receive his first three months' mayoral salary in Bitcoin. This move earned him the title of "Bitcoin Mayor."

During his term, he frequently attended various blockchain events and mingled with crypto celebrities, including Brock Pierce mentioned above.

Adams portrayed himself as a staunch supporter of crypto innovation, claiming he wanted to keep New York City on the cutting edge. However, beneath the veneer of financial innovation, Adams has long been criticized for the criminal records of his inner circle members and his frequent involvement in New York City's nightlife. In terms of governing style, he continued a showy approach heavily influenced by personality cult, neglecting numerous practical problems in municipal management. Since 2023, a series of scandals concerning Adams' campaign fundraising and government personnel have surfaced, tarnishing the reputation of this once-promising mayor. In November of that year, the FBI raided Adams' campaign team, seizing the residence of his chief fundraiser and confiscating numerous cell phones, computers, and other evidence. The investigation pointed to a corruption case involving the Turkish government providing illegal political donations to Adams' campaign through intermediaries. Subsequently, even more explosive news emerged. In September 2024, a federal grand jury in New York formally indicted then-mayor Eric Adams, charging him with multiple counts including accepting bribes from overseas, conspiracy to commit fraud, and obtaining illegal campaign funds from foreign powers. Adams became the first mayor in New York history to be indicted by the federal government while still in office. Following the exposure of the charges, he immediately pleaded not guilty in court and publicly declared his innocence. This indictment, which shocked the entire nation, caused Adams' political career to take a sharp downturn. The question of whether Adams should resign became a hot topic of debate in New York politics and media. The New York Times published an editorial stating that "Eric Adams should resign," and many prominent figures from both the Democratic and Republican parties called for his resignation. A poll in the fall of 2024 showed that as many as 70% of New York voters wanted the mayor to resign. However, Adams refused to relinquish power, insisting on remaining in office and actively defending himself. On the one hand, he hired a team of renowned lawyers to handle the lawsuit; on the other hand, he claimed he was being "politically persecuted" by the Biden administration because he had criticized the White House for its inadequate support to the city government on the New York immigration crisis. A dramatic turn of events occurred in early 2025. At that time, Trump had returned to the White House, and the new head of the U.S. Department of Justice was instructed to grant leniency in the Adams case. Then, in April, the Department of Justice formally applied to the court to dismiss the case, and subsequently, four deputy mayors from the Adams administration announced their resignations. The judge who had previously presided over the case specifically warned that this decision was worrying, suggesting that Mayor Adams's freedom "depended on the extent to which he implemented the Trump administration's immigration enforcement priorities," making him "more subservient to the demands of the federal government than to his own constituents." Behind the judicial leniency was Adams's rapid political shift to protect himself. Since the end of 2024, the Democratic mayor had begun to curry favor with the Trump camp. Not only did he publicly echo Trump's hardline stance on immigration, but he also traveled to Mar-a-Lago in Florida in January 2025 for a private meeting with Trump. He subsequently skipped the official Martin Luther King Jr. Day events in New York, instead attending Trump's presidential inauguration in Washington. It was noted that Adams' policy pronouncements clearly shifted to the right, gradually aligning with the Trump administration, including agreeing to strengthen New York's cooperation with federal immigration enforcement. Reportedly, Trump once indicated he would consider granting Adams a presidential pardon if necessary. However, the Justice Department ultimately withdrew charges, effectively granting Adams a pardon. Although spared imprisonment, Adams' political career was severely damaged. In the 2025 New York City mayoral election, due to scandals, he failed to win the Democratic nomination and instead attempted to run as an independent candidate. Later, persuaded by Trump allies, Adams announced his withdrawal from the race in September of that year and called for support for another candidate with Trump ties, former New York Governor Andrew Cuomo. Ultimately, Zohran Mamdani, a rising progressive politician, won the November election, succeeding Adams as the new mayor. This marked the end of Adams' single term. Then, Adams himself got involved in issuing cryptocurrency, launching NYCToken, a memecoin-like project. Whether Adams truly saw NYCToken as a tool for a comeback and image reshaping is something only he knows. Regardless, NYCToken's dismal development and trajectory not only failed to improve his reputation but also added further stains. There will always be another Adams; the nights in New York City never sleep, and neither does speculation.