Cardano founder Charles Hoskinson expanded his response to allegations that Enter Output International (IOG) misappropriated over 318 million ADA from unredeemed pre-sale wallets, calling the scenario deeply private and damaging.
In a Might 18 put up on X, Hoskinson mirrored on the reputational toll of the allegations, noting that the incident has reshaped his view of his relationship with the Cardano group.
He added:
“For a decade, I’ve been on the entrance strains. To not be given the advantage of the doubt right here with out sturdy proof on the contrary means I don’t have the connection I assumed with some individuals.”
Hoskinson added that following the discharge of an exterior audit, he intends handy management of his social media account to a media workforce and reduce his direct engagement.
Authorized pushback and audit plans
Hoskinson first responded to the allegations on Might 7, saying that IOG could pursue authorized motion in opposition to these accusing him of redirecting unclaimed ADA from Cardano’s 2017 Token Technology Occasion.
In response to a social media thread by X person Masato Alexander, a December 2020 protocol replace launched a perform that reassigned ADA from unredeemed UTxOs to Cardano’s reserves.
Alexander alleged that the following Transfer Instantaneous Rewards (MIR) transaction diverted these funds with out transparency or notification to the unique voucher holders.
Hoskinson countered that traders redeemed 99.8% of ADA vouchers. The remaining 0.2%, recovered beneath protocol guidelines after a seven-year window, was donated to Intersect, the Cardano business coordination physique.
He added that an externally audited report would quickly doc the redemption historical past and crowdsale course of. Hoskinson additionally stated he would “ship letters to the related events demanding retractions and apologies.”
Alexander disputed the declare, citing a public assertion by Intersect’s interim government director that it obtained solely $7 million in 2024, far lower than the estimated $600 million worth of the disputed ADA. He additionally criticized the shortage of an in depth audit publicly tracing the fund flows.
Basis and Emurgo deal with governance course of
On Might 19, the Cardano Basis issued an announcement distancing itself from the operational points of ADA voucher redemption after 2021. The assertion added that whereas it obtained basic updates, it didn’t present detailed accounting.
The inspiration said:
“The hassle to find and help remaining voucher holders has been led by the IO workforce over the previous 4 years.”
The inspiration welcomed IOG’s pledge to launch a third-party audit and beneficial that it embrace all MIR transactions, balances, and any returns generated throughout fund administration.
Cardano’s industrial arm, Emurgo, additionally defended IOG’s efforts in a Might 19 put up. It stated the seven-year redemption course of concerned a number of campaigns, third-party investigations in Japan, and Know Your Buyer (KYC) verification.
Emurgo acknowledged:
“Whereas the overwhelming majority of the pre-sale ADA vouchers have been efficiently redeemed, there was a small proportion that had gone unredeemed.”
The corporate added that the Shelley laborious fork would have rendered unredeemed ADA unspendable, necessitating their motion to allow additional redemptions.
The agency additionally expressed concern over “extreme, unwarranted FUD,” saying accusations based mostly on restricted info brought about pointless hurt to the ecosystem. It echoed IOG’s name for an audit and urged the group to stay affected person.
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