20-7-2025 – Charles Hoskinson, co-founder of Input Output Global and the Cardano blockchain, committed to releasing a comprehensive audit of his company’s ADA token holdings by mid-August following community allegations of improper fund acquisition worth approximately $600 million.
In a post on X, Hoskinson revealed he received an initial audit report and requested additional details before final publication. The Cardano co-founder directly addressed accusations that IOG inappropriately allocated 350 million unclaimed ADA tokens to itself, calling the claims “untrue” and expressing heartbreak over community distrust. He explained that most ADA tokens were legitimately claimed over seven years, with remaining unclaimed portions transferred to Intersect, Cardano’s governance body.
The controversy centers on allegations made by community members including NFT artist Masato Alexander, who claimed Hoskinson used a “genesis key” to manipulate the Cardano ledger during the 2021 Allegra hard fork, allegedly generating $619 million worth of tokens. Hoskinson firmly rejected these accusations, explaining that the disputed transaction involved a legitimate Move Instantaneous Rewards operation that transferred 318 million Cardano from reserve pools to treasury accounts in October 2021.
Hoskinson escalated his response by announcing plans to meet with defamation lawyers next week to explore legal action against those spreading the allegations. He promised to livestream himself reading the complete audit report upon its release and ensure it’s preserved on credible platforms for public scrutiny. The Ethereum co-founder indicated the dispute has damaged relationships within the Cardano community and suggested he may step back from direct social media engagement once the matter is resolved.
