Investors Accuse Eric Adams of Extortion Over New Token
Investors have raised concerns about former New York City Mayor Eric Adams, alleging that he might be extorting money amid the launch of a new meme coin designed to fight anti-Semitism.
On Monday, Adams introduced the “New York Token” in a video shared on social media. He described the coin as a tool to address increasing anti-Semitism and anti-American sentiments, particularly in New York City.
In a promotional video, he told a taxi driver, “This is about to leave like crazy.” He also added, “If you can’t go to New York, we can bring you New York.”
I’m proud to launch @buynyctoken a new token built to combat the rapid spread of anti-Semitism and anti-Americanism across this country and now in New York City.
Currently living in https://t.co/zowY9Ri3aK pic.twitter.com/qBMzV88Tmj
— Eric Adams (@ericadamsfornyc) January 12, 2026
Initially, the NYC token achieved a market cap of $580 million. However, its value dropped after reports indicated that wallets linked to the token’s creators sold off approximately $2.5 million worth of it at its highest value, according to reports.
This has led to accusations against Adams of engaging in a “rug pull,” a term used for scams where a public figure encourages investments in a token only to quickly cash out for personal profit, leaving investors at a loss.
In response, Adams denied the claims through an emailed statement to CoinDesk. He explained that following the launch, there was considerable demand, and adjustments were made by market makers to facilitate transactions. Adams insisted, “The team is not selling tokens and is subject to lockups and transfer restrictions. We are transparent and focused on building for the long term.”
The New York Token team acknowledged the concern over liquidity, stating that due to strong demand, they had to rebalance their liquidity strategies. They expressed awareness of reports indicating liquidity removals.
I’m proud to launch @buynyctoken a new token built to combat the rapid spread of anti-Semitism and anti-Americanism across this country and now in New York City.
Currently living in https://t.co/zowY9Ri3aK pic.twitter.com/qBMzV88Tmj
— Eric Adams (@ericadamsfornyc) January 12, 2026
The statement from the team noted their satisfaction with funds from TWAP and indicated they had added more funds to the liquidity pool, emphasizing their long-term commitment.
After the $2.5 million withdrawal and subsequent value decline of nearly 60%, the team reportedly re-injected around $1.5 million into the pool.
In an interview on Fox Business, Adams expressed his support for blockchain technology, highlighting its transparency. He stated, “The money generated from this coin will focus on combating the surge in anti-Semitism and address anti-Americanism.”
Proceeds from the token were intended to go towards educational initiatives on cryptocurrencies, scholarships for underprivileged students, and efforts to combat both anti-Semitism and anti-Americanism.
During his tenure, Adams was known for endorsing cryptocurrency, earning him the nickname “Bitcoin Mayor” after receiving his first three paychecks in Bitcoin.
Currently, the NYC token appears to be on a recovery path, though it has lost the trust of some traders.
