In a recent and emotionally charged update on social media, Charles Hoskinson, the visionary behind Cardano, expressed his feelings following the recent scrutiny surrounding the management of unclaimed funds from the initial coin offering (ICO). This experience has been illuminating for him, revealing both the strength and fragility of his support network.
Hoskinson shared that, during tough times, the true nature of relationships becomes apparent. He mentioned that the lack of support from some acquaintances has prompted him to rethink his engagement on digital platforms. Following the conclusion of an independent audit pertaining to the ICO, he plans to transfer management of his social media to a professional team, redesigning his popular Q&A sessions.
“While I will continue to participate in industry events and connect with individuals directly,” he stated, “this experience has profoundly affected me, and healing will take time.”
Understanding the Controversy Surrounding Cardano Tokens
From September 2015 to January 2017, Cardano successfully raised around $62 million by offering 25.9 billion ADA vouchers, predominantly in Japan, through a partnership with Attain Corporation. Buyers utilized these vouchers within the Daedalus wallet upon the network’s launch. This fundraising was conducted with strict compliance measures including KYC and AML, which were documented in relevant investor resources and further analyzed by firms like Messari.
The current issues stem from an estimated 318 to 350 million ADA—approximately 0.2% of the ICO allocation—remaining unclaimed several years after the network’s inception. NFT artist Masato Alexander recently alleged that during the Allegra hard-fork upgrade in 2021, Hoskinson had essentially “ERASED” the original UTXOs, diverting these funds into Cardano’s reserves and primarily staking them, only allocating a small portion to the new governance body, Intersect.
In response, Hoskinson categorically denied these allegations, labeling them as “fabrications.” He emphasized that 99.8% of the tokens had been successfully redeemed, and the remaining funds were shifted into a custodial account for safe handling after Attain’s bankruptcy created obstacles for processing late claims. “These funds were never stolen,” he cautioned, stating that legal action would follow if false claims continued. “Any further insinuation that IO has misappropriated funds will result in a lawsuit. Consider this a final notice.”
In a related post from May 13, Hoskinson elaborated on the security concerns surrounding the legacy on-chain redemption process after Attain’s closure. The team took proactive measures to “sweep” the unredeemed vouchers off-chain, ensuring proper verification of claimants through local legal channels and exchange partners. “This sweeping action was a protective measure for consumers, rather than an act of appropriation,” he clarified.
Currently, an “externally audited report” that details each segment of the voucher sales process, every redemption transaction, and follow-up actions regarding unclaimed ADA is nearing completion. This comprehensive document is set to be shared with IOG, the Cardano Foundation, EMURGO, and Intersect before being publicly available. Until this audit is finalized, Hoskinson stated that there will be no substantial comments from Cardano’s development team, as they focus on potential legal actions related to what he perceives as defamatory statements.
As of now, ADA’s trading value stands at $0.7199.
