Cardano under scrutiny: Hoskinson promises transparency after the controversy over 600 million do...

The world of criptovalute is back in the spotlight after new accusations hit one of its most well-known figures: Charles Hoskinson, founder of Cardano and a prominent figure in the blockchain

At the center of the storm, an alleged misappropriation of over 600 million dollars in ADA, the native cryptocurrency of the Cardano network. The accusations have triggered a wave of reactions in the community, prompting Hoskinson to promise a full audit to clarify the matter.

The accusations against Cardano: manipulation of the ledger and misuse of the genesis key

Tensions erupted when the non-fungible token artist (NFT) Masato Alexander publicly accused Hoskinson of having manipulated the Cardano ledger during the hard fork Allegra of 2021.

According to Alexander, Hoskinson allegedly used a “genesis key” to rewrite the ledger and gain control of 619 million ADA, equivalent to about 600 million dollars.

In support of his accusations, Alexander cited a transaction from October 24, 2021, classified as “Move Instantaneous Rewards” (MIR), which shows the transfer of over 318 million ADA tokens

This operation would have allowed the transfer of funds from the pool di riserva to staking or tesoreria allocations, raising doubts about the transparency and legitimacy of the process.

Hoskinson reacted firmly, calling the accusations “false” and “deeply offensive”

In a post published on May 6 on the X platform (formerly Twitter), he clarified that IOG (Input Output Global), the company he founded, has never appropriated 350 million unclaimed ADA

On the contrary, he explained that the vast majority of those tokens were redeemed by the original buyers, in a process that took seven years.

The founder of Cardano also specified that the tokens not claimed after this long period were donated to Intersect, an organization involved in the development and governance of the Cardano network

According to Hoskinson, the accusations stem from a lack of technical understanding and from a growing distrust that has deeply hurt him.

An audit to restore trust

To respond to the criticisms and restore trust in the community, Hoskinson announced that the Cardano Foundation is preparing a detailed audit report on the transactions and operations related to the Allegra hard fork

This document, currently being drafted, will be made public in the coming days. Hoskinson admitted that the backlash received from the community hit him hard:

“Not being considered innocent until proven otherwise means that I don’t have the bond I thought I had with some people,” he wrote in a post on May 18

He also anticipated that, once the audit is published, he will entrust the management of his X account to a media team and will modify the format of his AMA (Ask Me Anything) sessions and X spaces.

Charles Hoskinson is not new to controversies. Co-founder of Ethereum before launching Cardano, he is one of the most influential and discussed figures in the world of cryptocurrencies

His vision of a scientifically founded blockchain, built through academic research and peer review, has attracted both passionate supporters and harsh critics.

During his recent participation at the Paris Blockchain Week 2025, Hoskinson reiterated the importance of building a collaborative economy in the cryptocurrency sector

He emphasized the need to join forces to tackle the growing competition from grandi aziende tecnologiche, which are entering the blockchain world driven by maggiore chiarezza normativa.

The future of Cardano between transparency and challenges

The affair of the 600 milioni di ADA represents a crucial moment for Cardano. The publication of the audit report will be decisive in clarifying the facts and, potentially, in rebuilding the relationship between Hoskinson and his community.

In a sector where trust is fundamental, every shadow can have significant repercussions.

The promise of greater transparency and the willingness to address the accusations with data in hand demonstrate Hoskinson’s intention to defend the reputation of the project. However, it remains to be seen if the audit will be sufficient to quell the criticisms and restore internal cohesion.

In a constantly evolving landscape, where cryptocurrencies are increasingly under the scrutiny of regulators and investors, episodes like this highlight how fragile the balance is between innovation, governance, and responsibility

For Cardano, the next step will be decisive.