In a recent discussion, Charles Hoskinson, known for founding Cardano and serving as the CEO of Input Output Global (IOG), divulged surprising insights regarding a missed opportunity with the El Salvador government. This revelation was sparked by significant legal and geopolitical uncertainties surrounding a proposed airdrop that could have involved elements from the notorious MS-13 criminal group.

Hoskinson Weighs In on Rejection of El Salvador Proposal

During his appearance on The Shawn Ryan Show, Hoskinson shared that El Salvador’s administration had made an overture to his company. He noted that talks quickly floundered upon the introduction of a contentious idea: a mass distribution of cryptocurrency to all citizens, which alarmingly included individuals affiliated with internationally recognized criminal networks.

“President Bukele had intentions of distributing Bitcoin to the entire population of El Salvador,” Hoskinson stated. “Our concerns arose primarily because MS-13 is listed under OFAC sanctions. Facilitating transfers to such entities is a clear infringement of legal regulations.”

He elaborated on the potential repercussions of engaging in such a transaction, warning that issuing tokens to sanctioned persons—regardless of intent—could open the door to severe legal consequences, particularly under U.S. law enforced by OFAC. “We sought clarity and understanding from the Justice Department, but the hurdles were insurmountable. We had to opt out within a week,” he explained. “The entire situation was astonishing.”

Twitter user Cory Bates highlighted the seriousness of Hoskinson’s revelations, tagging influential figures in the Bitcoin community, including Max Keiser and Stacy Herbert, to gauge their reactions. As of now, neither Keiser nor Herbert has made any public comments regarding the issue.

Keiser’s past remarks about Hoskinson and Cardano indicate a history of friction. He characterized Cardano as a centralized entity and dismissed it as an “unregistered security.” His prior statements suggested a personal disdain for Hoskinson, claiming that El Salvador allegedly barred him from the country because of his previous attempts to engage them.

These allegations, although without formal validation, have largely remained unaddressed by Hoskinson until recently. The fresh disclosures bring additional complexity to the ongoing narrative surrounding El Salvador’s Bitcoin initiative, which heavily leans on partnerships with Bitcoin advocates and emphasizes the adoption of BTC as a national currency. In contrast, Cardano, often viewed skeptically by Bitcoin purists due to its perceived excessive academic nature or centralization, has not previously been acknowledged as a serious factor in Bukele’s cryptocurrency roadmap.

As of the time of writing, the value of Cardano stands at $0.573, indicating the ongoing fluctuations within the cryptocurrency market.