The main dishes to remember:
- The artist Masato Alexander affirms that a fork last 2021 allowed the Cardano team to move 318m ADA of the portfolios from presale to reserves.
- Intersect confirms that he received only $ 7 million, well below the $ 619 million in question.
- The controversy delighted the former doubts about the first distribution and governance mechanisms of Cardano tokens.
The Cardano Foundation is preparing to publish an audit of its Treasury participations after new allegations surfaced the accusation of the founder Charles Hoskinson to have diverted more than $ 600 million from ADA token.
The controversy focuses on a transaction in 2021 during the Fork Hard Fork, in which 318 million ADAs, estimated at around $ 619 million at the time, were moved from presale in Cardano reserves.
This decision also sparked accusations of unilateral control and manipulation of the big bookchain book.
Cardano faces difficult questions about ADA transfers
The non -loot artist, Masato Alexander, put the claims in the light, alleging that Hoskinson used a “key to Genesis” to rewrite the big book.
Alexander described the fork lasts as a “two -step maneuver” which has effectively erased the original UTXOS holding the ADA and reassigned them to the reserves controlled by the Hoskinson team.
In 2021, Charles Hoskinson unilaterally used his Genesis keys to rewrite the big book of Cardano and take control of ₳ 318 million dollars ($ 619 million)
In comparison, when the Hack Dao took place in 2016, the Ethereum community has fueled more than $ 60 million.
One of the biggest reorgs of the big book in the history of the blockchain:
– Masato_alexander (@masatoalexander) May 7, 2025
Alexander also underlined a second transaction involving the “Move Instantnous Rewards” functionality of Cardano (MIR), which was used to withdraw funds from the reserves.
He argued that most of the original tokens holders had never recovered their funds and wondered how such a large sum could be moved without the consent of original buyers.
Hoskinson addressed complaints on May 6, declaring that the “vast majority” of funds was either bought by ICO original buyers, or given at Intersect, the member organization involved in the governance of Cardano.
According to the interim executive director of Intersect, the group received around $ 7 million in funding, much less than the alleged $ 318 million. We do not know how, if necessary, withdrawn funds have gone elsewhere.
Critics have also raised concerns about the lack of transparency surrounding the funds, which would have been punctuated and won 25 million additional ADAs as a reward.
Hoskinson expressed his frustration at the accusations and what he described as a lack of confidence of the community. “It is not possible that no one takes this personally,” he wrote on X.
“Not receiving the benefit of the doubt here without strong evidence of the contrary means that I do not have the link that I thought with some people,” said Hoskinson.
He added that the experience made him “deeply injured” and he plans to change the way he publicly interacts. “Once the audit report, I will probably give my account X to a media team and change the format of my ASS and X spaces.”
The upcoming audit should clarity on the movement and the use of funds, but it may not be sufficient to resolve the concerns of the community.
For many, the controversy has reopened the old wounds on the distribution of the early chopped tokens of Cardano and raised wider questions about the responsibility of the governance of the blockchain.
The Cardano market plunges as Hoskinson defends the vision in the middle of the treasury concerns
ADA slipped from 4.6% to $ 0.7,352 following allegations of mismanagement of the treasury, the negotiation volume increasing by more than 27% to $ 1.05 billion in 24 hours, according to Coingecko.
In a recent interview, the founder of Cardano, Charles Hoskinson, responded to criticism by reaffirming the long -term objectives of the network and recognizing its current limits.
“We know what is wrong, and we know how to remedy it,” he said, responding to the growing concerns of the investor community and the wider cryptography space.
Cardano has been criticized several times for dragging behind in key areas such as DEFI growth and the adoption of Stablescoin. Its total locked value is less than $ 320 million, far behind the $ 7 billion in Solana.
In addition, the network has not yet attracted main stables like USDT or USDC or create a dynamic around coin communities that have dynamic rival chains.
However, Hoskinson underlined the Treasury of $ 1.5 billion in cardano as a major advantage and positioned the network as an ideal basis for Bitcoin Defi.
“This is the greatest opportunity of our lives,” he said. “And Cardano’s architecture is the best to unlock it.”
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