- The allegations against Cardano are allegedly abusive use of 318 million ADA tokens in 2021 during the Allegra-hardfork.
- The tokens in question come from the 2017 ICO and are said to have been moved to the network reserves without the consent of the community.
Cardano founder Charles Hoskinson has confirmed that he received a preliminary examination report at that time. The final report is to be published in mid -August.
The test extends to the processing of the ADA tokens by Input Output Global (IOG) as an operator company of the Cardano network. To ensure that the results are accessible and can be classified, the report should be uploaded to a public website together with relevant historical sales documents. Hoskinson mentioned that a number of detailed work is still necessary before the comprehensive document could be made available.
I just received the first copy of the audit report. I requested a lot more detail and context in several areas, but it’s shaping up quickly. I believe we are on schedule for a mid-August release, assuming the work continues at this pace and there are no delays.
I will read the…
— Charles Hoskinson (@IOHK_Charles) July 20, 2025
Hoskinson denies allegations of corruption
Three months ago, accusations appeared that Hoskinson’s hundreds of millions of non-stressed Ada tokens are said to have misappropriated. The claim that Hoskinson vehemently denies has triggered both public attention and legal steps. Hoskinson:
“I just received the first copy of the test report. I asked for more details and context in several areas, but it is going quickly.”
In his most recent public explanations, Hoskinson said that he would hire a law firm that deals with defamation cases. The aim is to consider legal steps against the copyrights of the allegations. He said that the claims have seriously damaged his reputation and that the damage to the Cardano brand could be hundreds of million dollars.
But not everyone in the community supports legal measures. Some have expressed concerns that legal steps against blockchain customers could lead to counter reactions. They warn that the mainstream media could represent it as if suturing tactics were to apply, which could continue to harm the project’s public image.
ADA increases 4.19% according to the temporary test report
When the message became known for the exam, ADA rose 4.19 % to $ 0.86. This happened in correlation with the cryptom market growth, but was strongly associated with the assurance of the upcoming financial transparency. Despite legal and reputable challenges, Cardano continues to show growth in defect development.
Coinbase added the support for Wrapped Ada to Base and thus further expanded the use of the token in decentralized finance after the Leios-upgrade in the network. The step reflects the continuing efforts to solve liquidity problems and to arouse institutional interest despite continuing internal disputes.
Hoskinson has publicly committed himself to transparency. As soon as the exam is completed, all processes in detail should be made open to the public.
No Comments