Eric Adams Denies Profit from NYC Token Launch

By: crypto insight|2026/01/15 14:30:04

Key Takeaways

Former New York City Mayor Eric Adams has denied allegations of profiting from the launch of NYC Token.
NYC Token’s value initially surged before dropping below 10 cents, raising concerns of a potential “rug pull”.
Adams stated that reports of him transferring funds from the token are false.
The NYC Token claims to represent the spirit of New York but has no affiliation with the city’s government.

WEEX Crypto News, 15 January 2026

The world of cryptocurrency is once again in the spotlight as Eric Adams, former Mayor of New York City, finds himself amid controversy surrounding the launch of a new cryptocurrency known as NYC Token. Reports have suggested that Adams profited from this endeavor, a claim he has vigorously denied through a spokesperson. This unexpected debacle has drawn attention for its dramatic price volatility and the broader implications for the cryptocurrency market.

Eric Adams’ Involvement under Scrutiny

Eric Adams, who served as the 110th Mayor of New York City from 2022 until recently, has made headlines over his alleged involvement with NYC Token. According to reports, Adams issued a statement countering accusations that he profited or transferred funds from the cryptocurrency, describing such claims as “false information.” This denial comes amid allegations of a “rug pull”—a type of scam where developers abandon a project and abscond with investors’ money.

The NYC Token, introduced recently, saw its price skyrocket to 58 cents immediately after its release. However, this initial success was short-lived; the token’s value plummeted to less than 10 cents shortly thereafter. Such a rapid decline has led market watchers to question the token’s legitimacy and sustainability, hinting at potential fraudulent activity akin to common crypto-market scams.

NYC Token: Claims vs. Reality

Purportedly representing the energy and essence of New York City, the NYC Token has boldly positioned itself as a community-driven cryptocurrency. Built on the Solana blockchain, it brands itself as symbolic of New York’s innovation and diversity. However, its connection to the city is ceremonial at best, with no official ties to New York City’s governmental bodies or other authoritative institutions.

Despite the lack of governmental endorsement, the token’s association with Eric Adams emerged after the mayor’s tenure. Known for his pro-cryptocurrency stance during his time in office, Adams advocated for the integration of digital currencies into everyday financial systems, even going so far as to accept his initial paycheck in Bitcoin.

-- Price

The “Rug Pull” Controversy

The term “rug pull” is frequently used in the cryptocurrency landscape to describe a scenario where developers or creators of a crypto project vanish abruptly, taking investor funds with them. These fraudulent schemes typically thrive in projects lacking transparency or those endorsed by anonymous actors promising exaggerated returns.

In the case of NYC Token, suspicions were aroused when the token’s value collapsed almost immediately following its initial success. Some reports claimed that Adams withdrew his investment roughly 30 minutes post-launch, triggering the token’s drastic devaluation. Although these claims have been rejected by Adams, the incident underscores the vulnerabilities in the crypto space where investor protections are minimal, and the risks are heightened.

Eric Adams’ Crypto Legacy

Historically, Adams has been a vocal supporter of blockchain technology and cryptocurrencies. In his efforts to elevate New York City to the status of a global crypto hub, he engaged in various initiatives aimed at fostering financial innovation via digital assets. These efforts were part of his broader agenda to enhance the economic landscape of the city by leveraging emerging technologies.

Despite his forward-thinking approach to digital currency adoption, the NYC Token debacle highlights the complex dynamics and potential pitfalls of such initiatives. It remains to be seen how this incident will affect Adams’s reputation and the general public’s perception of crypto ventures tied to influential figures.

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FAQs

How did the NYC Token’s value change after its launch?

The value of the NYC Token surged to 58 cents soon after its launch but quickly dropped to below 10 cents. This dramatic fluctuation raised concerns about the token’s stability and potential fraudulence.

What is a “rug pull” in cryptocurrency terms?

A “rug pull” is a scam where the developers of a cryptocurrency project suddenly withdraw funds and abandon the project, leaving investors with worthless assets. This can happen when developers sell their tokens at a high price and then exit the market.

Did Eric Adams profit from the NYC Token?

Eric Adams has denied the allegations of profiting from the NYC Token. He stated that reports claiming he transferred funds from the token are false.

What was Eric Adams’ stance on cryptocurrencies during his tenure as mayor?

During his time as mayor, Eric Adams was a strong proponent of cryptocurrencies. He advocated for New York City to embrace blockchain technologies and even received his first mayoral paycheck in Bitcoin.

Is the NYC Token officially linked to New York City’s government?

No, the NYC Token claims to represent the spirit of New York City, but it has no official connection with the city’s government or any other authoritative bodies.

On March 16, 2026, in Dallas, Texas, USA, CanGu Company (New York Stock Exchange code: CANG, hereinafter referred to as "CanGu" or the "Company") today announced its unaudited financial performance for the fourth quarter and full year ended December 31, 2025. As a btc-42">bitcoin mining enterprise relying on a globally operated layout and dedicated to building an integrated energy and AI computing power platform, CanGu is actively advancing its business transformation and infrastructure development.

2025 Full Year and Fourth Quarter Financial and Operational Highlights

• Financial Performance:

Total revenue for the full year 2025 was $688.1 million, with $179.5 million in the fourth quarter.

Bitcoin mining business revenue for the full year was $675.5 million, with $172.4 million in the fourth quarter.

Full-year adjusted EBITDA was $24.5 million, while the fourth quarter was -$156.3 million.

• Mining Operations and Costs:

A total of 6,594.6 bitcoins were mined throughout the year, averaging 18.07 bitcoins per day; of which 1,718.3 bitcoins were mined in the fourth quarter, averaging 18.68 bitcoins per day.

The average mining cost for the full year (excluding miner depreciation) was $79,707 per bitcoin, and for the fourth quarter, it was $84,552;

The all-in sustaining costs were $97,272 and $106,251 per bitcoin, respectively.

As of the end of December 2025, the company has cumulatively produced 7,528.4 bitcoins since entering the bitcoin mining business.

• Strategic Progress:

The company has completed the termination of the American Depositary Receipt (ADR) program and transitioned to a direct listing on the NYSE to enhance information transparency and align with its strategic direction, with a long-term goal of expanding its investor base.

CEO Paul Yu stated: "2025 marked the company's first full year as a bitcoin mining enterprise, characterized by rapid execution and structural reshaping. We completed a comprehensive adjustment of our asset system and established a globally distributed mining network. Additionally, the company introduced a new management team, further strengthening our capabilities and competitive advantage in the digital asset and energy infrastructure space. The completion of the NYSE direct listing and USD pricing also signifies our transformation into a global AI infrastructure company."

"As we enter 2026, the company will continue to optimize its balance sheet structure and enhance operational efficiency and cost resilience through adjustments to the miner portfolio. At the same time, we are advancing our strategic transformation into an AI infrastructure provider. Leveraging EcoHash, we will utilize our capabilities in scalable computing power and energy networks to provide cost-effective AI inference solutions. The relevant site transformations and product development are progressing simultaneously, and the company is well-positioned to sustain its execution in the new phase."

The company's Chief Financial Officer, Michael Zhang, stated: "By 2025, the company is expected to achieve significant revenue growth through its scaled mining operations. Despite recording a net loss of $452.8 million from ongoing operations, mainly due to one-time transformation costs and market-driven fair value adjustments, the company, from a financial perspective, will reduce its leverage, optimize its Bitcoin reserve strategy and liquidity management, introduce new capital to strengthen its financial position, and seize investment opportunities in high-potential areas such as AI infrastructure while navigating market volatility."

Fourth Quarter 2025 Ongoing Operations Financial Performance

Revenue

The total revenue for the fourth quarter was $1.795 billion. Of this, the Bitcoin mining business contributed $1.724 billion in revenue, generating 1,718.3 Bitcoins during the quarter. Revenue from the international automobile trading business was $4.8 million.

Operating Costs and Expenses

The total operating costs and expenses for the fourth quarter amounted to $4.56 billion, primarily attributed to expenses related to the Bitcoin mining business, as well as impairment of mining machines and fair value losses on Bitcoin collateral receivables.

This includes:

· Cost of Revenue (excluding depreciation): $1.553 billion

· Cost of Revenue (depreciation): $38.1 million

· Operating Expenses: $9.9 million (including related-party expenses of $1.1 million)

· Mining Machine Impairment Loss: $81.4 million

· Fair Value Loss on Bitcoin Collateral Receivables: $171.4 million

Profit Situation

The operating loss for the fourth quarter was $276.6 million, a significant increase from a loss of $0.7 million in the same period of 2024, primarily due to the downward trend in Bitcoin prices.

The net loss from ongoing operations was $285 million, compared to a net profit of $2.4 million in the same period last year.

The adjusted EBITDA was -$156.3 million, compared to $2.4 million in the same period last year.

Full Year 2025 Ongoing Operations Financial Performance

Revenue

The total revenue for the full year was $6.881 billion. Of this, the revenue from the Bitcoin mining business was $6.755 billion, with a total output of 6,594.6 Bitcoins for the year. Revenue from the international automobile trading business was $9.8 million.

Operating Costs and Expenses

The total annual operating costs and expenses amount to $1.1 billion.

Specifically, they include:

· Revenue Cost (excluding depreciation): $543.3 million

· Revenue Cost (depreciation): $116.6 million

· Operating Expenses: $28.9 million (including related-party expenses of $1.1 million)

· Miner Impairment Loss: $338.3 million

· Bitcoin Collateral Receivable Fair Value Change Loss: $96.5 million

Profitability

The full-year operating loss is $437.1 million. The continuing operations net loss is $452.8 million, while in 2024, there was a net profit of $4.8 million.

The 2025 non-GAAP adjusted net profit is $24.5 million (compared to $5.7 million in 2024). This measure does not include share-based compensation expenses; refer to "Use of Non-GAAP Financial Measures" for details.

Financial Position

As of December 31, 2025, the company's key assets and liabilities are as follows:

· Cash and Cash Equivalents: $41.2 million

· Bitcoin Collateral Receivable (Non-current, related party): $663.0 million

· Miner Net Value: $248.7 million

· Long-Term Debt (related party): $557.6 million

In February 2026, the company sold 4,451 bitcoins and repaid a portion of related-party long-term debt to reduce financial leverage and optimize the asset-liability structure.

Stock Repurchase

As per the stock repurchase plan disclosed on March 13, 2025, as of December 31, 2025, the company had repurchased a total of 890,155 shares of Class A common stock for approximately $1.2 million.

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