Eric Adams Faces Scrutiny After NYC Token Triggers Rug Claims

This quickly drew allegations of a potential rug pull from traders and blockchain analytics firms. In Thailand, the government ordered a coordinated crackdown on so-called grey money, directing regulators to tighten controls on digital asset transfers and close loopholes linking crypto, gold trading, and cash flows. 

NYC Token Draws Rug Pull Concerns

Former New York City mayor Eric Adams has come under scrutiny after promoting a newly launched crypto token that some people allege may have been rugged shortly after its debut. Adams unveiled the so-called “NYC Token” at a press conference in Times Square on Monday, alongside the launch of a project website, according to multiple local media reports. The announcement was framed as part of Adams’ long-standing interest in blockchain technology and digital assets, which was an area he championed during his tenure as mayor.

However, concerns emerged within hours of the launch, as on-chain data began to show signs of unusual liquidity movements. Crypto account Rune Crypto warned on X that roughly $3.4 million in liquidity appeared to have been drained from the token shortly after trading began. Another user, StarPlatinum, argued that the project appeared highly centralized and posed elevated risks to traders.

Analysis by on-chain visualization platform Bubblemaps revealed what it described as suspicious liquidity behavior. According to the firm, a wallet linked to the token deployer removed around $2.5 million in USDC near the market peak, then later reintroduced approximately $1.5 million after the token’s price fell by more than 60%. Bubblemaps said the pattern bore similarities to the controversial LIBRA token launch, which was widely criticized for liquidity manipulation.

The NYC Token website states that the asset is deployed on Solana and has a total supply of 1 billion tokens. It also claims that 70% of the supply is allocated to an “NYC Token Reserve” that is excluded from the planned circulating supply.

NYC Token website

At the press event, Adams said the token was intended to fund initiatives addressing what he described as anti-Americanism, antisemitism, and other social issues, with proceeds directed to an unnamed nonprofit organization. He argued that blockchain technology could help cities operate more efficiently, and drew comparisons to private-sector supply-chain use cases. Adams said he would not receive a salary from the token at launch and declined to share the identities of his co-founders.

Adams has long positioned himself as a pro-crypto political figure. As mayor, he hosted New York City’s first crypto summit, created the Office of Digital Assets and Blockchain, and famously accepted his initial mayoral paychecks in Bitcoin and Ethereum. 

Thailand Orders Crackdown on Grey Money

The scrutiny of how digital assets can be used to obscure illicit financial flows is increasing. In fact, Thailand’s government has ordered a sweeping crackdown on what officials describe as “grey money.” The push targets funds that move through seemingly legal structures but are often linked to criminal networks, tax evasion, or regulatory arbitrage, particularly where gaps exist between rules governing physical assets and newer digital platforms.

The initiative was outlined after Prime Minister Anutin Charnvirakul chaired a high-level meeting at the Finance Ministry on Friday. Finance Minister and Deputy Prime Minister Ekniti Nitithanprapas and other agencies were instructed to close loopholes in gold trading, especially transactions that do not involve physical delivery, and to strengthen oversight of digital asset flows.

Prime Minister Anutin Charnvirakul

At the center of the plan is the creation of a Data Bureau, a shared system designed to link financial data across multiple agencies through open APIs. Rather than forming a new regulator, the goal of the system is to give authorities a unified view of potentially suspicious activity spanning gold trades, digital assets, e-wallets, foreign exchange transactions, and cash movements, making it harder for illicit funds to move undetected between sectors.

Gold trading is a major focus. Anti-money laundering authorities have been directed to lower the reporting threshold for gold bar purchases from the current 2 million baht, to combat “smurfing,” where large transactions are broken into smaller amounts to evade scrutiny. Online gold trading platforms are also set to face tighter controls, with the Revenue Department studying a specific business tax for gold trades without physical delivery, alongside stricter accounting requirements, segregated accounts, and enhanced reporting to allow government audits.

In the digital asset space, the Thailand Securities and Exchange Commission was ordered to strictly enforce the Travel Rule, requiring crypto service providers to identify both senders and recipients in wallet-to-wallet transfers. The measure was put into place to reduce anonymity and prevent illicit funds from moving between crypto, gold, and cash without leaving a trace.