Eric Adams Denies Involvement After NYC Token Crashes 80%

Crypto News Altcoins

Written by Aaron S.,

Editor-In-Chief

Last Updated: January 16, 2026

Key Takeaways

Eric Adams denied claims of moving or profiting from NYC Token funds after the token lost 80% of its value shortly after launch;
His spokesperson said the drop was due to market volatility and called allegations of investor losses “false and unsupported by evidence";
Adams’s denial conflicts with an NYC Token post that mentioned “rebalancing liquidity” and adding funds after strong initial demand.

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Eric Adams Denies Involvement After NYC Token Crashes 80%

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Eric Adams, former New York City Mayor, has denied accusations that he benefited from or withdrew money linked to the recently launched NYC Token.

The digital token, which debuted on January 12, lost around 80% of its value within its first hour.

This drop led some online users to suggest the project could be a “rug pull", and analysts estimated investors might have lost about $3.4 million based on blockchain data.

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Todd Shapiro, Adams’ spokesperson, dismissed the claims on January 14 in a statement shared on X.

He said, “To be absolutely clear: Eric Adams did not move investor funds. Eric Adams did not profit from the launch of the NYC Token. No funds were removed from the NYC Token".

Shapiro added that the allegations were "false and unsupported by evidence" and explained that the token’s fall was due to “market volatility", not misconduct.

He also emphasized that Adams’ connection to the project was never meant for personal or financial benefit.

However, his comments that “no funds were removed” differ from a post on the NYC Token X account, which said the team had “rebalanced the liquidity” following early demand and later added more funds to the liquidity pool.

Meanwhile, a vulnerability in Truebit’s code enabled an attack that generated about $26 million in new tokens. What did the blockchain security firm SlowMist say? Read the full story.