Cardano (ADA) developer Input Output Global (IOG) announced the results of an independent audit regarding "Genesis Key Manipulation" and "Unredeemed Token Abuse," thoroughly refuting the latest "FUD" allegations against co-founder Charles Hoskinson. The audit was conducted jointly by the international accounting firm BDO and the law firm McDermott Will & Emery, with a clear conclusion: there is no evidence of fraud or abuse.
Controversy Review: 600 Million Dollars Unexchanged ADA Allegations
In May of this year, NFT artist Masato Alexander claimed that Hoskinson manipulated the Cardano ledger using the "Genesis Key" to seize a total of 318 million unredeemed ADA (worth approximately 600 million USD at the time).
Background: ADA was initially sold in Japan through a presale, in the form of digital vouchers, which early buyers could exchange for tokens.
Allegations: Cardano insiders are suspected of stealing or misusing ADA that should have been allocated to coupon holders, and increasing the difficulty of redemption through blockchain upgrades.
Hoskinson strongly denied at the time, pointing out that 99.8% of ADA tokens had been redeemed, with the remaining 0.2% subsequently transferred to the treasury. He described these accusations as "extremely damaging and targeted," and announced the initiation of an independent audit to set the record straight.
Audit Result: The Allegations Are Groundless
IOG Chief Legal Officer Joel Telpner stated that the legal audit has confirmed that the above allegations are completely unfounded.
Exchange rate: A total of 14,282 vouchers were exchanged (accounting for 99.2%), equivalent to 25.85 billion ADA.
Buyer age structure: Only 6.1% of buyers are over 65 years old, which overturns the accusations against ADA for targeting elderly sales.
Exchange process: No deliberate actions to obstruct the exchange were found.
Hoskinson: I'm waiting for an apology
After the audit report was released, Hoskinson stated on social platform X: "Now that the results are out, I am waiting for those who spread misinformation to apologize."
He emphasized that this audit is not only to respond to the accusations but also to protect the trust of the Cardano community and investors.
Impact and Follow-up
This audit report is of great significance to the Cardano ecosystem:
Eliminate market doubts: Clarified the controversy regarding the Genesis key and unredeemed tokens.
Maintain brand reputation: Prove IOG's transparency in token allocation and governance.
Stabilize investor confidence: Helps reduce the pressure of the market FUD on the ADA price
Conclusion
With the audit results released, Cardano successfully resolved a potential public relations crisis that could have shaken community confidence. For Hoskinson and IOG, this is not only a victory in the battle for reputation but also a clear signal sent to the outside world: transparency and compliance are the core cornerstones of the Cardano ecosystem.
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Cardano's major audit is out! IOG slams the false accusation of 600 million dollars, Hoskinson: I'm waiting for an apology.
Cardano (ADA) developer Input Output Global (IOG) announced the results of an independent audit regarding "Genesis Key Manipulation" and "Unredeemed Token Abuse," thoroughly refuting the latest "FUD" allegations against co-founder Charles Hoskinson. The audit was conducted jointly by the international accounting firm BDO and the law firm McDermott Will & Emery, with a clear conclusion: there is no evidence of fraud or abuse.
Controversy Review: 600 Million Dollars Unexchanged ADA Allegations
In May of this year, NFT artist Masato Alexander claimed that Hoskinson manipulated the Cardano ledger using the "Genesis Key" to seize a total of 318 million unredeemed ADA (worth approximately 600 million USD at the time).
Background: ADA was initially sold in Japan through a presale, in the form of digital vouchers, which early buyers could exchange for tokens.
Allegations: Cardano insiders are suspected of stealing or misusing ADA that should have been allocated to coupon holders, and increasing the difficulty of redemption through blockchain upgrades.
Hoskinson strongly denied at the time, pointing out that 99.8% of ADA tokens had been redeemed, with the remaining 0.2% subsequently transferred to the treasury. He described these accusations as "extremely damaging and targeted," and announced the initiation of an independent audit to set the record straight.
Audit Result: The Allegations Are Groundless
IOG Chief Legal Officer Joel Telpner stated that the legal audit has confirmed that the above allegations are completely unfounded.
Exchange rate: A total of 14,282 vouchers were exchanged (accounting for 99.2%), equivalent to 25.85 billion ADA.
Buyer age structure: Only 6.1% of buyers are over 65 years old, which overturns the accusations against ADA for targeting elderly sales.
Exchange process: No deliberate actions to obstruct the exchange were found.
Hoskinson: I'm waiting for an apology
After the audit report was released, Hoskinson stated on social platform X: "Now that the results are out, I am waiting for those who spread misinformation to apologize."
He emphasized that this audit is not only to respond to the accusations but also to protect the trust of the Cardano community and investors.
Impact and Follow-up
This audit report is of great significance to the Cardano ecosystem:
Eliminate market doubts: Clarified the controversy regarding the Genesis key and unredeemed tokens.
Maintain brand reputation: Prove IOG's transparency in token allocation and governance.
Stabilize investor confidence: Helps reduce the pressure of the market FUD on the ADA price
Conclusion
With the audit results released, Cardano successfully resolved a potential public relations crisis that could have shaken community confidence. For Hoskinson and IOG, this is not only a victory in the battle for reputation but also a clear signal sent to the outside world: transparency and compliance are the core cornerstones of the Cardano ecosystem.