Cardano Founder to Release Audit Addressing $600 Million ADA Theft Allegations

Cardano founder Charles Hoskinson has announced plans to release a comprehensive audit report in mid-August to address allegations of a $600 million ADA theft. The audit aims to clarify rumors about Input-Output Global (IOG)’s alleged manipulation of ADA allocations during the 2021 Allegra hard fork. Hoskinson plans to present the audit findings via a live-streamed presentation to ensure transparency and community engagement.

The controversy surrounding the Allegra hard fork involves unverified claims that IOG used a “genesis key” to manipulate ADA allocations, allegedly allocating approximately 350 million ADA to itself. Hoskinson has denied these allegations, stating that most of the ADA in question had already been claimed by rightful owners, with the remainder transferred to Intersect, a governance entity within the Cardano ecosystem, following a seven-year grace period.

Joel Telpner, Chief Legal and Policy Officer at IOG, has confirmed the progress and timeline of the audit, emphasizing the commitment to transparency. However, some community members have expressed concerns about the audit’s scope and the criteria defining its parameters, calling for comprehensive context to strengthen the report’s credibility upon release.

Despite the controversy, Cardano’s price outlook remains bullish, supported by multiple positive technical indicators. This resilience underscores Cardano’s robust ecosystem and the community’s support, even as the audit addresses the recent allegations. Market analysts note that the resolution of these claims through the audit could further stabilize Cardano’s market position, potentially attracting renewed institutional interest and reinforcing its long-term growth prospects.

In addition to the audit, Hoskinson has indicated plans to pursue legal action against individuals spreading defamatory claims. He mentioned upcoming consultations with a defamation law firm to explore strategic options, signaling a proactive stance in protecting Cardano’s reputation. This approach highlights the seriousness with which the Cardano leadership is addressing misinformation, aiming to safeguard the project’s integrity and maintain investor confidence moving forward.

The mid-August audit represents a critical juncture for Cardano, poised to dispel damaging rumors and reinforce the project’s transparency. With Hoskinson’s commitment to openness and legal recourse against defamation, Cardano is taking definitive steps to protect its ecosystem and community trust. Investors and stakeholders should watch closely as the audit’s findings could significantly influence Cardano’s future trajectory and market sentiment.