Eric Adams Accused of $2.5 Million Crypto 'Rug Pull' After NYC Token Collapses
Former New York City Mayor Eric Adams has come under fire after the abrupt collapse of his newly launched cryptocurrency, the NYC Token, which lost nearly $500 million in market value within minutes of its debut.
On January 12, Adams unveiled the NYC Token during an appearance on the "Mornings with Maria" program on Fox News. He described the project as an initiative to bolster educational programs and combat rising antisemitism and anti-Americanism through nonprofit funding.
"The money that's raised is going to go to those nonprofits like Combat Antisemitism, going into the college funds, such as the historical HBCUs, so this is money that, without raising taxes, you can use to fight the issues, social issues in our city," Adams said during the interview.
Initially, the token soared to a market capitalization of $580 million, suggesting substantial interest from crypto investors. However, the value crashed by 80% in a matter of minutes, plunging the token’s market cap to around $130 million, according to a report by The Kobeissi Letter on X.
Blockchain analysis platform Bubblemaps flagged what it called “suspicious” activity tied to the NYC Token. It reported that a wallet connected to the token’s deployer withdrew roughly $2.5 million in liquidity at the peak of the token's value. After the price dropped by 60%, approximately $1.5 million was returned, but around $900,000 was not restored.
Users on social media platform X were quick to accuse Adams of a crypto rug pull, a term used to describe a type of scam where the creators of a cryptocurrency abandon the project suddenly, siphoning off investor funds.
The NYC Token's website states that one billion tokens are in circulation and mentions that the team behind the coin will receive 10 percent of the profits. However, Adams has not disclosed the identities of the individuals involved in the project.
During his time as mayor, Adams was known for his enthusiasm for digital assets. In 2021, he accepted his first three paychecks in Bitcoin via Coinbase and publicly declared his goal of making New York City the "crypto capital of the world," earning him the nickname "Bitcoin mayor."
The NYC Token’s debut follows a trend initiated by high-profile figures entering the cryptocurrency space with meme coins. In January 2025, ahead of his second presidential inauguration, Donald Trump and his wife Melania launched two eponymous meme coins. The Official Trump (TRUMP) coin reached an all-time high of $73.43 on January 19, 2025, before falling over 90% in value to its current price of $5.48. Similarly, the Melania Meme (MELANIA) reached $13.05 on January 20, 2025, but has since declined more than 98%, now trading at $0.1804.
These ventures have drawn criticism for potential conflicts of interest, especially with Trump’s dual roles in politics and crypto. One billionaire investor described Trump’s meme coin launch as “foolish.”
Similarly, the former NYC mayor’s foray into crypto is attracting growing scrutiny. A demonstrator was seen chanting against both Adams and Trump during a protest held in Washington Square Park in New York City on February 22, 2025.
News outlets including The New York Times and CoinDesk reported that Adams had pledged to use proceeds from the NYC Token to support nonprofit work and teach children about blockchain, further reinforcing his longstanding public support of crypto technologies.
Despite these stated objectives, the token’s rapid collapse and the withdrawal of funds by a deployer-linked wallet have cast a shadow over Adams’ latest move in the cryptocurrency space.