tl;dr
Cardano founder Charles Hoskinson denied allegations that Input Output Global (IOG) misappropriated over 318 million ADA from unredeemed pre-sale wallets, calling the accusations deeply personal and damaging. He highlighted the reputational impact and announced plans to scale back his social media e...
Cardano founder Charles Hoskinson has denied allegations accusing Input Output Global (IOG) of misappropriating over 318 million ADA from unredeemed pre-sale wallets, describing the accusations as deeply personal and damaging. He emphasized the reputational harm these claims have caused and announced plans to reduce his direct community engagement, with intentions to transfer his social media management to a dedicated media team following the release of an external audit.
The controversy originated from reports that a December 2020 protocol update reassigned ADA from unredeemed UTxOs to Cardano’s reserves without transparent communication to voucher holders. Hoskinson refuted these claims by stating that 99.8% of ADA vouchers were redeemed, and the leftover 0.2%, recovered after a seven-year window, was donated to Intersect, the Cardano industry coordination body. He also indicated that an audited report documenting this process would be published soon.
Despite Hoskinson’s reassurances, critics like social media user Masato Alexander challenged the transparency of these transactions, highlighting public statements which suggest Intersect received significantly less than the disputed amount and expressing concerns over the absence of a detailed fund flow audit.
The Cardano Foundation issued a statement distancing itself from the voucher redemption operations post-2021, clarifying that detailed accounting was outside its remit but welcoming a comprehensive third-party audit from IOG. Meanwhile, Emurgo defended the redemption efforts, explaining that the seven-year redemption period included various campaigns and Know Your Customer (KYC) verifications, and that protocol upgrades made movement of unredeemed ADA necessary. Emurgo criticized the spread of unwarranted fear and uncertainty, urging patience and cooperation within the community.
This episode showcases the challenges blockchain projects face in maintaining transparency and trust while managing large-scale token distributions over extended periods. It also highlights the vital role that audits and clear communication play in addressing community concerns and preserving ecosystem integrity.