Cardano Founder Faces Scrutiny Over $600M ADA Treasury Claims
Cardano founder Charles Hoskinson is under renewed scrutiny following allegations of misappropriation of approximately $600 million worth of ADA tokens. The crypto community is closely watching as Hoskinson addresses these claims and prepares to release an audit report. This situation highlights the importance of transparency and trust in the crypto space.
Allegations and Community Reaction
Non-fungible token (NFT) artist Masato Alexander alleged that Charles Hoskinson manipulated the Cardano ledger using a “genesis key” to take control of $619 million in ADA during the 2021 Allegra hard fork. This accusation has sparked significant debate within the Cardano community, with many members expressing concerns about the transparency of treasury management.
Hoskinson’s Response and Audit Report
In response to the allegations, Hoskinson stated that Input Output Global (IOG) is preparing an audit report on its treasury holdings. He refuted the claims, explaining that a 2021 transaction involving over 318 million ADA tokens was part of a “Move Instantaneous Rewards” initiative. Hoskinson clarified that the “vast majority” of the 350 million ADA was redeemed by original buyers over seven years, with the remainder donated to Intersect. He has expressed feeling “deeply hurt” by the community’s mistrust.
According to Hoskinson, after the audit report is released, he intends to change the format of his AMAs and X spaces, possibly handing over his X account to a media team.
Hoskinson’s Perspective
Hoskinson, a co-founder of Ethereum and a prominent figure in blockchain development, emphasized the need for collaboration within the crypto industry to compete with traditional tech firms. He highlighted this during Paris Blockchain Week 2025, noting the increasing regulatory clarity that is drawing more established companies into the blockchain space.
Conclusion
The allegations against Charles Hoskinson and the subsequent audit report underscore the critical role of transparency and accountability in the cryptocurrency world. As the situation unfolds, the crypto community will be keenly observing the findings of the audit and Hoskinson’s response. The original report is from Cointelegraph.
Disclaimer
The information provided in this article is for informational purposes only and does not constitute financial advice. All news content is sourced from trusted platforms like Cointelegraph, Bitcoinist, and our own writers written with added value, editorial insights and reviews by our team. Always do your own research before making any investment decisions.
