Charles Hoskinson's Ledger Mystery Solved: No Misconduct Found

A joint audit of Cardano’s ADA voucher program, conducted by Input Output Global (IOG), global law firm McDermott, Will & Schulte, and accounting firm BDO, has cleared founder Charles Hoskinson of allegations of financial misconduct. The audit, published on September 4, 2025, found that 99.7% of all ADA tokens sold under the voucher program were properly redeemed through on-chain transactions and the Post-Sweep Redemption Project [1]. This report effectively refutes claims that Hoskinson or the Cardano network misappropriated $600 million worth of ADA tokens.

The allegations, which surfaced in May 2025, accused Hoskinson of manipulating the blockchain during the 2021 Allegra hard fork and redirecting 318 million ADA—valued at $619 million at the time—into Cardano reserves. Critics, including NFT artist Masato Alexander, claimed that a “genesis key” was used to rewrite the ledger, preventing many original token holders from reclaiming their ADA [1]. Hoskinson had previously promised an audit to address these claims, and the release of the findings marks a pivotal moment in the Cardano ecosystem’s defense of its legitimacy.

The audit revealed that the small fraction of unclaimed ADA tokens—approximately 0.3% of the total—were transferred in 2023 to Cardano Development Holdings (CDH), which now uses them to fund grants and community initiatives through Cardano’s governance body, Intersect [2]. The report detailed the redemption timeline, emphasizing that 97.3% of vouchers were redeemed during the Byron era and that redemption rates climbed to 99.2% by mid-August 2025. The audit further confirmed that safeguards were in place to prevent misuse, and no evidence was found to support the claims of ledger manipulation or fraud [2].

Hoskinson responded to the audit results by expressing confidence in the findings and stating he was “waiting for the apologies” from those who had raised the allegations [2]. For the Cardano ecosystem, the audit serves as a credibility milestone, reinforcing trust in the project’s governance and transparency. The findings are particularly significant as Cardano moves forward with key initiatives, including the launch of a USD-backed stablecoin. With the controversy surrounding the voucher program now resolved, the project can focus on innovation and expansion rather than defending past claims.

ADA’s price performance, however, has not yet reflected the audit’s positive implications. In the week leading up to the audit’s release, ADA fell more than 5.7%, underperforming the broader cryptocurrency market. On-chain data showed that wallets holding 1-10 million ADA reduced their holdings slightly, a sign of whale activity [1]. While some investors remain optimistic about ADA’s potential for a bullish rebound, the token’s short-term volatility highlights the market’s sensitivity to both technical and sentiment-driven factors.

The audit’s findings have broader implications for blockchain governance and token management. By demonstrating a high redemption rate and a transparent post-sweep process, Cardano has set a benchmark for accountability in decentralized finance. The report’s 128 pages detail the structured and secure framework used for voucher distribution, ensuring that transactions were recorded on-chain and subject to rigorous verification [2]. As the crypto industry continues to evolve, the Cardano audit underscores the importance of independent, multi-partner investigations in building trust and regulatory compliance.

Source: [1] Cardano Internal Audit Reveals No Misconduct, Confirms 99.7 ... (https://finance.yahoo.com/news/cardano-internal-audit-reveals-no-075803441.html) [2] Charles Hoskinson Fires Back as Audit Confirms 99.7% ... (https://coinpedia.org/news/charles-hoskinson-fires-back-as-audit-confirms-99-7-ada-redemption/)