Frank Carone, a longtime confidant of former New York City Mayor Eric Adams, is involved as a partner in the ex-mayor's new cryptocurrency venture, the NYC Token. The token has faced immediate backlash after a liquidity withdrawal caused its value to plummet, sparking rug pull accusations. Adams denies any wrongdoing, promising proceeds for education and anti-hate initiatives.
Former New York City Mayor Eric Adams launched the NYC Token on Monday in Times Square, touting it as a tool for economic revitalization and funding blockchain education programs, as well as efforts against antisemitism and anti-Americanism. Adams, who left office on December 31 after a single term marked by corruption scandals including his federal indictment, stated he would not take a salary from the project "at this time." He emphasized working independently, mentioning upcoming trips to Texas and Senegal for business opportunities.
The launch quickly turned controversial when an account withdrew millions in liquidity hours after debut, causing the token's value to plunge. Critics accused the venture of a "rug pull," a scam where creators hype a token to attract funds before extracting liquidity. Spokespeople for NYC Token denied this, describing the move as an effort "to keep trading running smoothly," though they provided no further details and withheld partner information despite Adams claiming they were listed on the website—which shows none.
Two sources confirmed to the New York Daily News that Frank Carone, an attorney with decades-long ties to Adams and leader of his failed reelection campaign, is among the partners. Carone, lacking crypto experience, did not respond to comment requests. Separately, Brooklyn landlord Sefi Zvieli signed formation papers for 18 Digital LLC, linked to the token; he previously secured a $3.5 million city deal in 2021.
Adding to the scrutiny, former mayoral candidate Eddie Cullen accused Adams' team of stealing his July 2025 proposal for an "NYC Token™," shared via email with tech official Matt Fraser. Cullen, a crypto executive, plans a cease-and-desist letter and provided a pitch deck outlining citywide economic benefits. Adams' spokesman declined comment.
Crypto billionaire Brock Pierce, a Adams ally, reviewed the token's fundamentals at the ex-mayor's request. He acknowledged the rollout's sloppiness but insisted no funds were lost and no scam occurred, noting the crypto community's wariness of shady appearances.
