Cardano co-founder Charles Hoskinson is preparing to unveil a highly anticipated audit report in mid-August, a move aimed at directly addressing swirling accusations that Input-Output Global (IOG), the company spearheading Cardano’s development, improperly acquired hundreds of millions of ADA.
The decision to release this comprehensive audit follows a wave of controversy that erupted in May, when fake headlines and social media posts falsely accused Hoskinson of orchestrating a $600 million ADA theft. "I’m absolutely disgusted…The headlines I’ve seen are beyond damaging, they will require months if not years of work and millions of dollars to undo post-audit,” Hoskinson wrote in a May 20 post, expressing his profound dismay.
The core of the allegations centers on unproven claims that IOG manipulated the Cardano ledger during the 2021 Allegra hard fork, allegedly using a “genesis key” to secretly allocate approximately 350 million ADA to itself.Beyond vehemently denying the rumors, Hoskinson promptly committed to an independent audit and signaled potential legal action against those propagating what he calls defamatory claims. On Sunday, July 20, the Cardano executive reiterated this commitment, pledging to publish a full audit of IOG’s ADA holdings.
Hoskinson confirmed that the audit report is progressing well and remains firmly on track for a mid-August release. He announced plans to read the entire report via livestream once it becomes available, ensuring full transparency. Additionally, a dedicated website will be launched to permanently host the document, along with other historical records from the initial ADA sale. Joel Telpner, IOG’s Chief Legal and Policy Officer, is understood to be aligned with Hoskinson’s stated timeline.
While the community largely welcomes the audit, some users have expressed concerns regarding its scope and the parameters defining the investigation, calling for more detailed context to bolster the report's credibility upon public release.
Addressing the central accusation, Hoskinson stated that the audit will directly tackle claims that IOG secretly allocated unclaimed ADA to itself. He clarified that the vast majority of the 350 million ADA in question had, in fact, already been claimed by their rightful owners. The remaining portion, he explained, was legitimately transferred to Intersect—a prominent governance body within the Cardano ecosystem—following a seven-year grace period.In a strong message to those spreading misinformation, Hoskinson hinted at imminent legal recourse. “Meeting with the defamation law firm next week to discuss options and strategy,” he stated, indicating his serious intent to combat false narratives.
The upcoming audit is poised to be a pivotal moment for Cardano’s credibility. With tensions running high and the project’s founder under intense scrutiny, the mid-August release could either reaffirm Hoskinson’s leadership and restore widespread community trust or, conversely, deepen existing fractures within the ecosystem.
July 2025, Cryptoniteuae