Cardano Founder Charles Hoskinson Releases Audit Draft Addressing $600 Million ADA Manipulation Allegations

Cardano founder Charles Hoskinson has shared the first draft of an audit report addressing allegations of manipulation involving the ADA cryptocurrency. The audit process was initiated to investigate claims made by NFT artist Masato Alexander, who alleged that Hoskinson and his company Input Output Global (IOG) manipulated approximately $600 million worth of ADA in 2021. The allegations centered on Hoskinson's unauthorized transfer of 318 million ADA from reserves to other pools using "genesis keys," which are private keys with the authority to transfer tokens or change network settings on the network.

Hoskinson has disputed these allegations, stating that the majority of the ADAs in question consist of tokens that have been unclaimed for seven years. He added that the remaining amount was donated to Cardano’s governance organization, Intersect. Hoskinson announced that he would publish the draft audit report and documents from past token sales on a dedicated website, and that he would read the full report live when it is ready. The final report is scheduled for release in mid-August.

Hoskinson has also confirmed that he is consulting with a defamation law firm to explore responses to the public accusations, underscoring the seriousness with which he is addressing the allegations. The audit report is expected to directly address claims that IOG secretly allocated unclaimed ADA to itself, a critical aspect of the allegations that goes to the heart of the trust and transparency fundamental to the Cardano community. By conducting a thorough audit and making the findings public, Hoskinson aims to restore confidence in the Cardano ecosystem and dispel any doubts about the integrity of IOG's operations.

The announcement of the audit report has been met with anticipation from the Cardano community, who are eager to see the findings and understand the truth behind the allegations. The transparency and accountability demonstrated by Hoskinson in this matter are likely to be viewed positively by the community, reinforcing their trust in the Cardano project and its leadership. The matter has the potential to escalate into legal action, but Hoskinson's proactive approach to addressing the allegations and his commitment to clearing his name and that of IOG are likely to be seen as a positive step towards resolving the controversy.