- Charles Hoskinson has denied allegations that Input Output Global misappropriated over 318 million ADA, calling the claims damaging and unsupported.
- Cardano entities pledged transparency through an external audit and urged community patience amid rising scrutiny.
Cardano founder Charles Hoskinson has strongly refuted allegations that his company, Input Output Global (IOG), misappropriated over 318 million ADA from unredeemed pre-sale wallets. In a heartfelt statement posted on May 18, Hoskinson described the accusations as deeply personal and damaging, saying they have forced him to reassess his bond with the Cardano community.
“To not be given the benefit of the doubt here without strong evidence to the contrary means I don’t have the connection I thought with some people,” Hoskinson said.
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A Legal and Audited Response in the Works
The controversy centers on claims that IOG redirected ADA from unredeemed tokens following a 2017 Token Generation Event. X user Masato Alexander pointed to a 2020 protocol change and a Move Instantaneous Rewards (MIR) transaction as evidence of funds being moved without transparency.
Hoskinson said investors redeemed 99.8% of ADA and reassigned the remaining 0.2% following protocol rules after seven years. He emphasized that Intersect, an industry coordination group, received these tokens and that a full external audit will soon confirm the timeline and fund flow.
He also plans to send legal notices seeking retractions and apologies from those making the claims.
Foundation and Emurgo Speak Out
The Cardano Foundation issued a statement on May 19, clarifying that it had no operational role in redeeming ADA vouchers post-2021. While it received general updates, it didn’t have access to detailed records. The foundation supported IOG’s commitment to a third-party audit and suggested it include all MIR-related transactions.
Emurgo, Cardano’s commercial arm, backed IOG’s position, stating that the seven-year redemption process included third-party investigations in Japan and Know Your Customer (KYC) procedures. Emurgo explained that the Shelley hard fork made unredeemed tokens unspendable, requiring their movement to ensure further redemptions.
Calling the allegations “excessive, unwarranted FUD,” Emurgo encouraged the community to remain calm and await the audit results.
Shifting Engagement Going Forward
Hoskinson, clearly affected by the situation, announced he would soon reduce his direct interaction on social media and hand over control of his accounts to a media team.
As the ecosystem waits for the promised audit, the situation highlights the delicate balance between transparency, governance, and trust in blockchain communities.
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