Former Mayor Eric Adams Hijacked ‘NYC Token’ Concept, Startup Claims

A small New York-based blockchain startup, Municipal Digital Assets (MDA), has launched a blistering public accusation, claiming that the administration of former Mayor Eric Adams appropriated and utilized the company’s proprietary concept for a city-backed cryptocurrency, tentatively dubbed the ‘NYC Token.’

According to MDA CEO Sarah Chen, the company engaged in multiple confidential briefings with Adams administration officials, including members of the Mayor’s Office of Technology and Innovation, between late 2022 and early 2023. These meetings allegedly detailed MDA’s blueprint for a digital civic engagement token designed to incentivize resident participation, reward volunteerism, and potentially integrate into municipal fundraising efforts.

“We provided them with a fully developed white paper, detailed economic models, and specific integration strategies. We were explicitly promised confidentiality,” Chen stated in a press conference held Tuesday. “Months later, the city began publicly discussing ‘digital loyalty programs’ and blockchain initiatives that bore striking resemblance—often word-for-word—to our proprietary submission. They essentially took our product and tried to repackage it as an internal government concept.”

The startup claims that the administration ceased communication suddenly after receiving the detailed proposal. While the ‘NYC Token’ was never officially launched by the city during Adams’ tenure, MDA alleges the preparatory work and internal discussions based on their design constitute intellectual property theft and a breach of implied contract.

A spokesperson for the former mayor released a statement late yesterday, denying the allegations. “The concept of a municipal or city-based digital reward program is not novel. Numerous cities globally have explored similar systems,” the statement read. “Any internal exploration conducted by the City of New York was entirely independent and based on generalized public knowledge regarding blockchain technology and city loyalty incentives. We reject the notion that any specific startup’s confidential information was misused.”

MDA confirmed that they are preparing a formal lawsuit seeking damages and an injunction against the city, demanding recognition for their foundational work. Legal experts suggest the outcome may hinge on whether MDA can prove the administration utilized specific, non-obvious elements of their proposal rather than generic crypto concepts.

Source: Former Mayor Eric Adams Hijacked ‘NYC Token’ Concept, Startup Claims