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.
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