Charles Hoskinson Denies Allegations, Promises Audit

Cardano founder Charles Hoskinson denied allegations of misappropriating $600M ADA on Twitter in May 2025, promising an independent audit.

The issue underscores debates over transparency and control within blockchain communities, affecting Cardano’s reputation.

Audit Announced Amid $600M ADA Misuse Allegation

Charles Hoskinson, founder of Cardano, rejected accusations of misusing funds, stating on Twitter that no “350 million unclaimed ADA” was misappropriated. He pledged a third-party audit to verify financial handling. “IOG never gave itself 350 million unclaimed ADA. This is a lie. The vast majority was claimed, and the remaining that was forfeited after seven years of waiting was donated to Intersect.”

Masato Alexander, an NFT artist, alleged ledger manipulation using a “genesis key” during a 2021 fork. The funds are tied to the Allegra hard fork, but Hoskinson maintains the majority of ADA was correctly redeemed.

Division in Cardano Community Over Allegations

The allegations have sparked intense discussions in the Cardano community, creating uncertainty around ADA’s governance. Developers and investors call for clearer oversight and communication from project leaders.

The financial markets remain stable with no drastic ADA price changes reported. Still, the situation highlights ongoing issues in managing pre-mined cryptocurrency allocations.

Lessons from Ethereum DAO Hack on Transparency

Similar controversies, including the Ethereum DAO hack, have challenged blockchain transparency. These incidents often lead to increased calls for improved governance and security measures in crypto projects.

The forthcoming audit may determine if Cardano can restore trust and maintain stability amidst scrutiny. Lessons from past incidents suggest proactive transparency may mitigate long-term reputational damage.