Cardano founder Charles Hoskinson has vehemently denied recent allegations of a $600 million misuse of ADA, promising to deliver a comprehensive public audit report to the community by mid-August. The controversy erupted after a community member claimed that Input Output Global (IOG), Cardano’s development firm, and Hoskinson used a “genesis key” to alter the Cardano ledger and gain control of funds during the Allegra hard fork in 2021.
Audit Report in Progress and Transparency Measures
Hoskinson has confirmed that he has received the initial version of the audit report and is currently requesting additional details and context on several items. He expressed confidence that the report is “shaping up quickly” and is on track for a mid-August publication, assuming no unforeseen delays. This audit aims to address the accusations directly, detailing that the vast majority of the funds in question were either redeemed by original ICO buyers or later donated to Intersect, a governance organisation within the Cardano ecosystem. Hoskinson has repeatedly denied any wrongdoing, calling the claims “lies” and expressing his disappointment over the community’s lack of trust.
To ensure maximum transparency and prevent speculation, Hoskinson plans to present the audit findings in a live stream. Furthermore, a dedicated website will be launched to host all related documents permanently, providing public access to the detailed report and historical data from the ADA sale.
Legal Action and Community Impact
The controversy has been significant within the Cardano community, with many members calling for transparency and accountability. In response to the accusations, which he described as deeply hurtful, Hoskinson has confirmed he is consulting a defamation law firm to explore potential legal responses against those spreading what he deems false information.
Despite the ongoing controversy, ADA’s price dynamics have shown resilience. Over the past week, ADA has risen by 17% and was trading at $0.87 at the time of writing. This suggests that while the allegations have created a stir, a segment of the market remains confident in Cardano’s long-term prospects, perhaps anticipating that the upcoming audit will resolve the dispute and reinforce trust in the project’s integrity. The release of this audit report is highly anticipated and could mark a pivotal moment for Cardano’s credibility and the broader blockchain governance landscape.
