Frank Carone, an associate of former Mayor Adams, is a partner in a controversial cryptocurrency venture in New York City.
Frank Carone, an attorney and long-time political associate of former New York City Mayor Eric Adams, has been identified as a partner in the controversial launch of Adams’ latest venture, a cryptocurrency token known as the “NYC Token.” Sources close to the matter have confirmed Carone’s involvement, raising questions about the transparency and legitimacy of the initiative.
The NYC Token has faced significant scrutiny since its launch as the value rapidly diminished following a major liquidity withdrawal. The incident led to allegations of a “rug pull,” a term used in the cryptocurrency space to describe a scam where creators extract funds after inflating the token’s value through misleading marketing tactics. While representatives for the NYC Token have denied any wrongdoing, asserting that the liquidity changes were made to ensure smoother trading operations, critics remain skeptical.
Despite a press conference held by Adams, where he stated that all project partners would be publicly listed on the token’s website, no names have appeared on the site. This lack of transparency has heightened suspicions, particularly amid claims from Eddie Cullen, a former mayoral candidate and crypto executive, who alleges that Adams’ project closely resembles a plan he pitched last summer. Cullen has informed Adams’ team of his intentions to send a cease-and-desist letter, potentially escalating the dispute into a legal battle.
The involvement of Carone raises additional concerns. Although he has been a trusted ally of Adams for many years—having led Adams’ unsuccessful re-election campaign—his knowledge and experience in the cryptocurrency arena remain unclear. Various attempts to reach Carone for further comment were unsuccessful, and his representative declined to address inquiries regarding his role in the token’s development.
Adding to the controversy, Sefi Zvieli, a Brooklyn landlord and another figure connected to the NYC Token, is noted for signing the certificate of formation for a related entity. Zvieli has historical ties to city contracts involving a property used as a homeless shelter, which has drawn attention given the contentious nature of public-private partnerships.
Adams, who concluded his tenure on December 31 following a single term marked by multiple corruption scandals, emphasized that proceeds from the NYC Token would be allocated to blockchain education and initiatives aimed at combating social issues like antisemitism. As he pursues business prospects beyond his mayoral role, the future of the NYC Token and its implications for both Carone and Adams remain uncertain, inviting further scrutiny from both the public and regulatory bodies.
This incident underscores the challenges surrounding transparency in the cryptocurrency sector and the balance between innovation and ethical governance in the rapidly evolving digital finance landscape. The outcomes of these developments could have enduring impacts on perceptions of public figures in the crypto space.
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