Cardano Founder to Address Financial Concerns with Audit
Charles Hoskinson, the founder of Cardano, has announced that the Cardano Foundation plans to release an audit to address growing concerns about financial misconduct.
This comes nearly two weeks after NFT artist Alexander made claims that Hoskinson had made unilateral changes to the Cardano Ledger, which reportedly lacked transparency regarding the management of 318 million ADAs—an amount that once surpassed $600 million.
Claims of Misappropriation Involving ADA
On May 6, Alexander stated that during 2021, there were movements of 350 million ADA plus an additional 25 million from staking rewards linked to the Genesis key.
He contended that carrying out such transactions would necessitate custom code. Hoskinson, however, accused Alexander of using it to manipulate the process. Alexander noted that Intersect, another entity involved, supposedly spent less than $10 million in its initial year, raising questions about the whereabouts of the remaining funds.
Robert, a supporter of Cardano, mentioned that he had been assigned the original 350 million ADAs nearly five years ago, emphasizing the project’s decentralized nature.
In response to the claims, Alexander pointed out that I/O Global (IOG) had received 2.4 billion ADA during the Genesis event, referencing the substantial ADA transactions that followed shortly after.
However, Hoskinson rejected these allegations, asserting that most of the original 350 million ADA had already been redeemed by the initial buyer and that forfeited funds were allocated to support other projects.
The IOG never gave 350 million unclaimed ADAs. This is a lie. The majority were alleged, and the rest that was confiscated after waiting seven years was donated to cross. Intersect was funded in the same way and by the same TGE that funded the CF.
No matter how many people…
– Charles Hoskinson (@iohk_charles) May 6, 2025
Further Revelations
On May 7, Alexander provided a detailed thread on X, claiming that the “Aregra” hard fork in 2021 contained hidden features which erased ICO-related unclaimed ADA to bolster reserves.
In 2021, Charles Hoskinson unilaterally rewrites Cardano ledger using his Genesis keys, controlling 318m ($619 million)
In comparison, when the DAO hack occurred in 2016, the Ethereum community exceeded $60 million.
One of the biggest ledgers in blockchain history: 🧵
– Masato_alexander (@masatoalexander) May 7, 2025
He explained what he described as a two-step operation to execute this, suggesting that the first step involved consolidating 318 million ADAs, followed by the use of mobile rewards for withdrawals.
Alexander questioned the validity of the redemption process and noted the absence of public accounting, emphasizing that he only held a small amount of ADA. He pointed to a claim made by interim executive director Jack Briggs, who revealed that the organization had only allocated about $7 million.
Audit Announcement by Hoskinson
As pressure has mounted, Hoskinson took to X on May 18 to announce the upcoming audit, aiming to clarify the situation.
One advantage of a crisis or testing people event is that you can quickly see who your friend is and who is fairweather. I would like to thank you for all the support and kind words, both personally and publicly.
The downside is that you believe you have a cold…
– Charles Hoskinson (@iohk_charles) May 18, 2025
He also shared his disappointment over some community responses, reflecting that this experience has clarified who his true allies are. It has been a significant emotional toll for him, prompting him to reconsider his level of public engagement moving forward.
Additionally, Hoskinson mentioned intentions to hand over his X account to a media team and change his format for AMAs and public discussions.
This content is informative and should not be considered financial advice. Readers are encouraged to conduct thorough research before making any investment decisions.
