Former NYC Mayor Eric Adams has become the latest high-profile figure accused of orchestrating a rug pull in the cryptocurrency space, after launching a meme coin touted as a tool to combat antisemitism and anti-Americanism, only to allegedly withdraw millions in liquidity at its peak, leaving investors with massive losses.
What Happened
Adams, who served as NYC's mayor from 2022 to 2025 and once branded himself the "Bitcoin (BTC) Mayor," announced the launch of the $NYC token on X, formerly Twitter, describing it as a initiative to fight hate and promote blockchain education.
The token quickly gained traction, surging to a market capitalization of over $50 million within hours of its debut on the Solana (SOL) blockchain.
However, blockchain analytics firm Lookonchain reported that Adams removed liquidity from the pool at the price peak, extracting approximately 3.18 million USDC, causing the token's value to plummet by more than 80% in under 30 minutes.
One trader, identified as Dr6s2o, suffered a loss of $473,500, a 63.5% drop in less than 20 minutes after panic-selling amid the crash.
The incident has drawn widespread scrutiny, with crypto analysts labeling it a classic rug pull, where project creators hype a token to attract investment before draining funds and abandoning it.
Solana blockchain records show large withdrawals from associated wallets, including one linked to Adams, shortly after the launch.
The former mayor has not publicly responded to the allegations, but the event has revived questions about his past financial dealings, including federal investigations into campaign funding during his tenure.
This scandal adds to a turbulent post-mayoral period for Adams, who faced indictment on corruption charges in 2025 before stepping down.
A blockchain analyst told Yellow.com that the alleged rug pull of $NYC token mirrors patterns seen in other politician-backed meme coins, blending civic rhetoric with apparent financial exploitation.
Adams' alleged actions place him among a roster of celebrities and influencers who have faced accusations of similar schemes in recent years.
Also Read: History Repeats As Fed's Independence Faces Greatest Threat Since 1970s Inflation Spiral That Devastated America
Rug pulls have proliferated in the meme coin sector, particularly on platforms like Pump.fun, where low barriers to entry enable quick launches and exits.
Celebrity Rug Pulls And Controversies
Below are a few examples of rug pulls involving public figures.
Caitlyn Jenner ($JENNER, 2024): The Olympic athlete and reality TV star launched the token on Pump.fun, which peaked at a $46 million market cap before a massive dump by a connected wallet caused a 65% plunge.
Investors filed a class-action lawsuit alleging fraud, with reported losses including $50,000 for one pair of plaintiffs.
Jason Derulo ($JASON, 2024): The singer's meme coin soared post-launch but crashed after dumps from wallets tied to the project.
Derulo admitted to selling portions for marketing but faced allegations of complicity in a pump-and-dump scheme, with a promoter confessing to dumping $180,000 worth.
Haliey Welch ($HAWK, 2024): Known as the "Hawk Tuah Girl," Welch promoted her meme coin to a $490 million market cap before it dropped 90-95% in hours due to coordinated dumps by a small group of wallets holding 80% of the supply.
One investor reported losing $33,000 of their life savings.
Rich the Kid (unnamed token, 2024): The rapper's coin, launched via a promoter, tanked after liquidity pulls and dumps.
He publicly accused the promoter of executing a pump-and-dump, claiming unauthorized actions led to the crash.
Logan Paul (CryptoZoo, ongoing issues from 2021-2025): The YouTuber's NFT-based game project faced rug pull allegations after failing to deliver promised features, leading to a class-action lawsuit in 2023 that continued into 2025.
Paul offered refunds but was accused of misleading investors.
Read Next: Warren Warns 90M Americans Face Retirement Catastrophe As Trump Admin Pushes Bitcoin Into 401(k) Plans
