Cardano is under intense scrutiny as founder Charles Hoskinson
The controversy began when Cardano community members accused IOG—the company behind Cardano—of misusing 318 million ADA tokens. These tokens remained unclaimed after Cardano’s 2017 ICO and became unspendable following the network’s Shelley upgrade in 2020, which moved Cardano towards full decentralization.
IOG reportedly moved the unclaimed tokens to ensure a smooth upgrade process. However, this move has led to accusations of financial misconduct.
In response to the allegations, Charles Hoskinson strongly denied the claims and announced an independent audit of IOG to promote transparency and accountability.
“We are initiating a comprehensive audit to set the record straight,” Hoskinson stated on X.
IOG Chief Legal Officer Joel Telpner confirmed that top-tier legal and accounting firms will lead the audit:
Although the audit is set to begin soon, there is no official word on when the findings will be released.
Hoskinson reportedly views the accusations as personal and has expressed emotional distress over the situation. He is considering handing over control of his social media accounts to a team. This is not the first time he has considered stepping back—earlier controversies, including one related to the WALDE meme coin, led him to consider similar actions.
This audit could be a pivotal moment for Cardano’s reputation. As the community awaits the results, the transparency of the process and the credibility of the firms involved will be essential to restoring faith in the ecosystem.
An upcoming audit of IOG’s treasury and Allegra hard fork transactions to validate ADA allocations.
IOG is being audited due to allegations of misappropriating over $600M in unclaimed ADA tokens from its 2017 ICO.
A successful audit could rebuild trust, set precedents for unclaimed ICO funds, and boost Cardano’s reputation for transparency.
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