Ex-NYC Mayor Eric Adams Faces $2.5M Crypto ‘Rug Pull’ Allegations
▼ Summary
– Former NYC Mayor Eric Adams’s new cryptocurrency token, “NYC Token,” crashed hours after launch, losing most of its peak $580 million market value.
– Blockchain analysis flagged suspicious activity, including a deployer-linked wallet withdrawing $2.5 million at the token’s peak and not returning roughly $900,000.
– Users on social media accuse Adams of a “rug pull” scam, similar to accusations faced by “Hawk Tuah Girl” Hailey Welch after her token crashed in 2024.
– Adams, a crypto supporter, stated he would allocate some token funds to nonprofits fighting antisemitism and promoting blockchain education.
– The token’s website states there are 1 billion tokens, with the anonymous team taking 10% of profits, though Adams did not identify the team members.
The recent launch of a cryptocurrency token associated with former New York City Mayor Eric Adams has sparked significant controversy and allegations of a financial scam. The digital asset, known as the NYC Token, experienced a dramatic price collapse shortly after its debut, erasing hundreds of millions in market value and leading to accusations of a “rug pull” scheme. Blockchain data indicates suspicious trading activity, with a wallet linked to the token’s creator withdrawing approximately $2.5 million at the peak of the token’s value.
According to analysis from the platform Bubblemaps, the activity surrounding the coin raised immediate red flags. The key transaction involved the removal of a substantial amount of liquidity just as the token’s market capitalization soared to an estimated $580 million. While about $1.5 million was later returned to the project’s liquidity pool after the price had already crashed by 60%, reports note that roughly $900,000 remains unaccounted for. This pattern is characteristic of a rug pull, where developers abandon a project and abscond with investor funds.
Social media platform X has been flooded with criticism from users directly accusing Adams of orchestrating the scheme. The situation draws parallels to other celebrity-linked crypto failures, such as the token launched by internet personality “Hawk Tuah Girl” Hailey Welch, which also crashed precipitously after its debut. In the case of the NYC Token, the website states there are one billion tokens in circulation and that the development team would retain 10% of profits, though Adams has not publicly identified who comprises that team.
Prior to the launch, Adams expressed his support for the project, framing it within his broader advocacy for cryptocurrency and blockchain technology. He suggested at a Monday event that a portion of the funds generated would be directed to nonprofits fighting antisemitism and “anti-Americanism,” as well as initiatives to educate children about blockchain. However, these statements now ring hollow for investors who watched the token’s value evaporate. The incident underscores the persistent risks and lack of regulation in the cryptocurrency market, particularly for projects tied to public figures who may lend credibility without providing transparency or accountability.
(Source: The Verge)
