Cardano Founder Denies Misuse of $600 Million in ADA Tokens

Cardano founder Charles Hoskinson has denied allegations of misusing ADA tokens, the native cryptocurrency of the Cardano blockchain. The controversy began with accusations that Input Output Global (IOG), the company behind Cardano, misused $600 million in ADA. Hoskinson has strongly rejected these claims, stating that the remaining unclaimed tokens were donated to Intersect after years of inactivity.

The allegations were fueled by a community member who claimed that Hoskinson used a “genesis key” to alter the Cardano ledger and seize control of the funds during the Allegra hard fork in 2021. Hoskinson has denied any manipulation and has assured the community that the process of addressing these issues is moving swiftly.

In response to the controversy, Hoskinson announced an audit in May. He has asked for additional details in the initial draft but has assured the community that the process is moving swiftly. He plans to livestream the report’s release, accompanied by a dedicated website to host related documentation.

Meanwhile, legal action may be in the works. Hoskinson confirmed he’s meeting with a defamation law firm to explore possible responses to the public accusations. This move indicates that Hoskinson is taking the allegations seriously and is prepared to defend his reputation and the integrity of the Cardano project.

The controversy surrounding the alleged misuse of ADA tokens highlights the importance of transparency and accountability in the cryptocurrency industry. Hoskinson's decision to conduct a public audit and livestream the report’s release is a step towards addressing these concerns and rebuilding trust within the community. The outcome of the audit and any potential legal action will be closely watched by the cryptocurrency community and could have implications for the future of the Cardano project.