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Charles Hoskinson Orders Full Audit of IOG Amid $600M ADA Misuse Allegations

Published by
Vignesh S G

Cardano is under intense scrutiny as founder Charles Hoskinson announces a full audit of Input Output Global (IOG) following serious allegations of ADA token misappropriation worth over $600 million.

What Sparked the $600M ADA Controversy?

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.

Hoskinson Orders Audit to Restore Trust

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.

Who Is Conducting the IOG Audit?

IOG Chief Legal Officer Joel Telpner confirmed that top-tier legal and accounting firms will lead the audit:

  • BDO International – Handling the financial audit
  • McDermott Will & Emery – Managing legal oversight
  • A crypto analytics firm – Documenting findings for public transparency

Although the audit is set to begin soon, there is no official word on when the findings will be released.

Hoskinson Calls Allegations “Personal Attacks”

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.

Why This Matters

  • Raises critical questions about token management transparency
  • Could set a precedent for how crypto companies handle unclaimed ICO funds
  • A successful audit may help rebuild trust in Cardano and IOG

Conclusion

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.

FAQs

What is the IOG audit report?

An upcoming audit of IOG’s treasury and Allegra hard fork transactions to validate ADA allocations.

Why is Cardano’s IOG being audited?

IOG is being audited due to allegations of misappropriating over $600M in unclaimed ADA tokens from its 2017 ICO.

What impact could the IOG audit have on Cardano?

A successful audit could rebuild trust, set precedents for unclaimed ICO funds, and boost Cardano’s reputation for transparency.

Vignesh S G

Vignesh is a young journalist with a decade of experience. A proud alumnus of IIJNM, Bengaluru, he spent six years as a Sub-Editor for a leading business magazine, published from Kerala. His interest in futuristic technologies took him to a US-based software company specialising in Web3, Blockchain and AI. This stint inspired him to view the future of journalism through the lens of next generation technologies. Now, he covers the crypto scene for Coinpedia, uncovering a vibrant new world where technology and journalism converge.

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