Adams ally Frank Carone among partners behind NYC ex-mayor's controversial crypto token

Chris Sommerfeldt, New York Daily News on Jan 16, 2026

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NEW YORK — Frank Carone, a close friend and longtime political confidant to Eric Adams, is among the partners behind the launch of the ex-New York City mayor’s cryptocurrency token, according to sources familiar with the matter.

The revelation of Carone’s involvement in the so-called “NYC Token” venture comes after the digital asset this week became a lightning rod for controversy. The token’s value plunged when an account pulled millions of dollars in liquidity out of it within hours of the launch.

The liquidity withdrawal triggered accusations that the ex-mayor’s coin had been involved in a “rug pull,” a cryptocurrency scam under which someone creates hype around a new token in order to secure capital that they then quickly pull out and run off with.

Spokespeople for the NYC Token initiative have denied any rug pull, saying the liquidity shakeup was an “attempt to keep trading running smoothly,” but declining to elaborate further. NYC Token reps have also declined to say who is involved in the token initiative besides the ex-mayor. Adams said at a launch press conference in Times Square on Monday that all his partners were listed on the crypto coin’s website. (No partners are listed on the site.)

Two sources with direct knowledge confirmed to The News on Thursday that Carone is among the “partners” involved in the token. The sources didn’t have details about the exact nature of Carone’s involvement and it wasn’t immediately clear if he provided any capital in connection with the launch.

Carone, an attorney who has known the ex-mayor for decades and spearheaded Adams’ aborted reelection campaign, didn’t return multiple requests for comment this week. A spokesman for Carone, whose involvement was first referenced in an Associated Press report Thursday, declined to comment.

Carone has no known experience in the crypto industry.

Compounding scrutiny around the NYC Token, Eddie Cullen, a onetime New York City mayoral candidate and crypto company executive, said earlier this week Adams’ crypto venture rips off a proposal he presented the ex-mayor’s team with last summer.

On Tuesday, Cullen told Fortune Magazine that he planned to send a cease-and-desist to Adams warning him to pull back the NYC Token or face possible legal repercussions for allegedly stealing his plan.

Speaking to The News on Wednesday and Thursday, Cullen said his contact with Adams’ team about the initiative mainly played out over email, and included communications with Matt Fraser, the mayor’s top City Hall tech official who, like Adams, is a big crypto proponent. Cullen provided The News with a pitch deck slide show that he said he shared with Adams’ team in July 2025 that featured detailed explanations about how “NYC Token™” could become a “tool for citywide economic revitalization.”

“We will no longer make any comments on legal strategy or any next steps as we pursue exhaustive options for accountability before enacting our plan,” Cullen said.

Adams spokesman Todd Shapiro declined to comment on Cullen’s accusations.

Brock Pierce, a crypto billionaire close with Adams, confirmed to The News on Thursday that the ex-mayor asked him to take a look at NYC Token’s “fundamentals” after the launch stirred up controversy.

Pierce acknowledged the rollout was sloppy but said no wrongdoing occurred and that the money in liquidity isn’t gone from the project.

“The crypto community has been rug-pulled many times, has been scammed many times, so [there’s suspicions] when it starts to appear at all shady,” Pierce said.

In addition to Carone, Business Insider reported Wednesday that Sefi Zvieli, a Brooklyn landlord, signed the certificate of formation for 18 Digital LLC, an entity listed in paperwork as being associated with NYC Token’s launch.

In late 2021 — after hiring Carone as an attorney — Zvieli reportedly netted a $3.5 million deal to rent out a property he owns in Brooklyn to a city government-funded nonprofit set to operate the building as a homeless shelter.

Zvieli couldn’t be reached for comment Thursday.

Adams, who left office on Dec. 31 after a single term marred by multiple corruption scandals, including his own federal indictment, said at Monday’s Times Square appearance that some proceeds generated from his NYC Token will be used to fund blockchain education programs. Proceeds will also go to efforts aimed at fighting “antisemitism and anti-Americanism,” he said.

At the press conference, Adams said he didn’t plan to “take a salary” in connection with NYC Token “at this time.”

“I will not be taking 9-to-5 salary jobs,” said Adams, who later that day traveled to Texas, with plans to also visit Senegal, for what he described as business opportunities. “I’m going to be working for Eric Adams.”

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(New York Daily News reporter Josephine Stratman contributed to this story.)

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