- Allegations Surface: Charles Hoskinson faces backlash after claims he used a “genesis key” during the 2021 Allegra hard fork to access $619M in ADA.
- Hoskinson Responds: He denies the accusations, stating most ADA was redeemed by buyers over seven years, and the rest was donated to Intersect.
- Audit Incoming: An audit report is in progress; Hoskinson expressed hurt over the community’s mistrust and hinted at stepping back from his personal X (Twitter) engagement.
Input Output Global (IOG) is gearing up to release an audit report following new allegations about the misappropriation of roughly $600 million in ADA tokens. The claims have put Cardano founder Charles Hoskinson back in the spotlight, with community members—including NFT artist Masato Alexander—accusing him of manipulating the Cardano ledger during the 2021 Allegra hard fork.
Allegations Spark Ledger Controversy
Alexander claimed Hoskinson used a “genesis key” to rewrite the Cardano ledger, supposedly taking control of around $619 million worth of ADA. He also pointed to an October 24, 2021 “Move Instantaneous Rewards” (MIR) transaction, which transferred over 318 million ADA from reserve pools into staking or treasury allocations.
Hoskinson, in response, clarified that ADA redemptions remained open for three years after that transaction. He said the majority of the 350 million ADA was actually redeemed by original buyers—a process that spanned seven years.
“IOG never gave itself 350 million unclaimed ADA,” Hoskinson wrote on X, calling the claim a lie. He added that any unclaimed ADA after the seven-year period was donated to Intersect.
Audit Report Incoming, Hoskinson Reacts
Hoskinson confirmed that an audit report is in the works, addressing the controversy. Still, he shared that he’s “deeply hurt” by the community’s reaction.
“To not be given the benefit of the doubt here without strong evidence… that stings,” he wrote in a May 18 post. He also said he might hand over his X account to a media team and switch up how he runs his AMAs and Spaces moving forward.
Broader Reflections on Crypto’s Future
Speaking at Paris Blockchain Week 2025, Hoskinson touched on broader industry themes. He emphasized the importance of collaborative economics and community cohesion as big tech begins entering the blockchain space, thanks to clearer regulations.
Hoskinson—also a co-founder of Ethereum—remains a central voice in the crypto world, but this latest wave of criticism is testing the strength of his community ties.
