Cardano founder Hoskinson accused of hijacking $619 million

Let me tell you a story that’s got more twists than a plate of spaghetti at Sunday dinner.

We’re talking about Cardano, Charles Hoskinson , and a pile of ADA so big, it’d make Scrooge McDuck jealous, $619 million, to be exact.

Shadow of suspicion

The accusations? That Charles himself rewrote Cardano’s ledger back in 2021 to swipe those funds. The response?

Let’s just say, Charles isn’t exactly taking it lying down. It started with a social media post. Some guy named Masato Alexander gets on X and starts shouting from the rooftops.

“Hey, Hoskinson rewrote the Cardano ledger, took control of $619 million in ADA, and left original investors, especially the old-timers in Japan, out in the cold.”

He claims it all went down during the Cardano “Allegra” hard fork, where a little protocol magic supposedly swept up unredeemed presale tokens and funneled them into Cardano’s reserves.

And who had the keys to those reserves? You guessed it, Charles and his crew at Input Output Global.

Back and forth

Now, Charles, he’s not the kind of guy to let that slide. He fires back on X, denying everything.

Says those ADA vouchers were unspendable, so they rolled ‘em into a custodial account to keep distributing to the original buyers.

“These funds were not stolen. We kept handing out the genesis funds for three more years.”

If Masato keeps flapping his gums? Charles threatens legal action. This is my last warning, he writes.

Next thing you know, cease and desist letters are flying. But Masato? He doubles down. Claims he’s got insiders on Charles’s payroll feeding him info for years. Says, discovery in court? Bring it on.

Verify

The critics say a sneaky function called ‘returnRedeemAddrsToReserves’ was used to sweep those old ICO tokens into the reserves, then moved again using a MIR transaction, the kind usually meant for staking rewards or treasury handouts.

But this time, the story goes, it all ended up in an account under centralized control, with no clear record of where it went.

Community members, especially those original Japanese investors, are demanding receipts.

They want to know some things like who got paid? How much went to actual development? Where’s the full audit?

Now, Charles claims some of that ADA funded Intersect, a governance group tied to Cardano.

But Intersect says they only got $7 million this year, peanuts compared to the $619 million in question.

Crypto analyst Jonathan Morgan steps in, backing Charles, saying it was all protocol-approved and most of the ADA, about 300 million, made it back to the rightful owners. The leftover chunk? Used for community growth, supposedly.

But let’s be honest. Until Charles drops the full ledger and shows everyone where the money went, the whispers aren’t going away.

Fortunately, it’s a fully decentralized public ledger, that everyone can quickly, independently audit with a simple, self-hosted node, and get to know the full transaction history, right?

Disclosure:This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

Kriptoworld.com accepts no liability for any errors in the articles or for any financial loss resulting from incorrect information.