NYC Token Statement and Tax Consequences
Ralph Yozzo
This is what our former mayor is promoting now. Does anyone know the tax consequences of these actions?
Why would someone promote a so-called non-profit that does not exist yet and why would people if they are people donate money to it?
If you want to see the full Trace of the first few minutes of this so-called launch see https://youtu.be/lHXJ2CD2hdE
https://gemini.google.com/share/c19b32f8c517
Official Statement on NYC Token
Recent reports alleging that Eric Adams moved money out of the NYC Token are false and unsupported by any evidence.
To be absolutely clear:
Eric Adams did not move investor funds.
Eric Adams did not profit from the launch of the NYC Token.
No funds were removed from the NYC Token.
Mr. Adams’ support for this initiative has been public, transparent, and mission-driven, focused exclusively on:
Promoting education and blockchain literacy.
Combating antisemitism and anti-Americanism.
Supporting nonprofit and civic initiatives.
At no point was his involvement intended for personal or financial gain.
Like many newly launched digital assets, the NYC Token experienced market volatility. Mr. Adams has consistently emphasized transparency, accountability, and responsible innovation.
New York City remains a global financial capital, with billions of dollars in cryptocurrency traded daily, underscoring the sector’s importance to the city’s economy.
The NYC Token is designed as a free, voluntary way to support educational and nonprofit efforts. Claims suggesting otherwise are inaccurate.
Mr. Adams remains committed to responsible innovation and to using emerging technologies to strengthen trust, education, and shared civic values.
We are encouraged by the potential to use token-based initiatives responsibly to help combat hate and promote civic good.
Todd Shapiro
Spokesperson for Eric Adams
Regarding the Tax Consequences
Regarding your question about the tax consequences of this initiative:
Because this is a cryptocurrency asset, the IRS generally treats it as property. This means:
For Investors: Any "airdrop" or receipt of tokens as a gift may be taxable as ordinary income based on the fair market value at the time of receipt. Selling or trading the token later triggers capital gains or losses.
For the Initiative: If the proceeds are funneled through a qualified 501(c)(3) nonprofit, those funds may be tax-exempt. However, as of January 2026, reports indicate the specific nonprofit entity for this project has not yet been formally established, which could complicate the tax-exempt status of early transactions.