Hoskinson promises audit, is ‘deeply hurt’ by $600M Cardano treasury claims

The Cardano Foundation is preparing to release an audit report addressing allegations of misappropriation of approximately $600 million worth of ADA tokens. These allegations stem from claims by NFT artist Masato Alexander, who accuses Cardano founder Charles Hoskinson of manipulating the Cardano ledger during the 2021 Allegra hard fork to seize control of $619 million in ADA using a “genesis key.”

Supporting this claim, a transaction dated October 24, 2021, shows a transfer of over 318 million ADA tokens, labeled “Move Instantaneous Rewards” (MIR), moving funds from reserve pools into staking or treasury allocations. However, Hoskinson counters that ADA redemptions remained open for three years post-transaction, with the “vast majority” of the 350 million ADA redeemed by original buyers over a seven-year period. Any remaining unclaimed ADA, he states, was donated to Intersect. He vehemently denies IOG’s self-allocation of 350 million unclaimed ADA tokens, calling it a lie.

Hoskinson’s response acknowledges the upcoming audit report but expresses deep hurt at the community’s lack of trust. He cites this as evidence of a fractured connection with some community members, despite the lack of strong evidence against him. Following the audit’s release, he plans to transition his X account management to a media team and alter the format of his AMAs and X spaces.

This controversy unfolds as Hoskinson, a prominent figure in blockchain development and co-founder of Ethereum, advocates for collaborative economics within the crypto industry. Speaking at Paris Blockchain Week 2025, he highlighted the need for collaboration to compete with traditional tech companies increasingly entering the blockchain space, fueled by growing regulatory clarity. The situation underscores the complexities and sensitivities surrounding transparency and governance within the cryptocurrency ecosystem. The upcoming audit report is anticipated to provide crucial clarity on the allegations against Hoskinson and the Cardano Foundation’s handling of its treasury.