Cardano (ADA) Founder Charles Hoskinson Orders a Full Independent Audit of Input Output Global (IOG) Following Serious Allegations of Misappropriation of Funds Worth Over $606 Million

Cardano's founder, Charles Hoskinson, has ordered a full independent audit of Input Output Global (IOG) following serious allegations regarding the misappropriation of ADA tokens worth over $600 million.

Members of the Cardano community have accused Input Output Global (IOG) of misusing 318 million ADA tokens left unclaimed after Cardano’s initial coin offering (ICO) in 2017 and becoming unspendable following the network’s Shelley upgrade in 2020.

These tokens reportedly went unclaimed after the Cardano ICO, rendering them unusable following the upgrade, which transitioned Cardano towards full decentralization. To facilitate a smoother upgrade process, IOG moved the unclaimed tokens, an action that drew criticism and led to accusations of financial misconduct.

Clocking in at around $600 million at current prices, the misused tokens sparked a heated debate within the Cardano community. A group of community members known as the “Cardano Anti Corruption Society” has been vocal in raising concerns over IOG’s actions, arguing that they misused the tokens and potentially violated the principles of decentralization and transparency.

This move has raised serious concerns about how crypto companies manage ICO funds and unclaimed tokens. In a rapidly evolving industry like crypto, maintaining transparency and ethical practices is paramount.

However, Charles Hoskinson, Cardano’s founder, has vehemently denied any wrongdoing by IOG and is keen on clearing the firm’s name. In response to the allegations, Hoskinson has announced that IOGO will undergo a full audit by third-party firms.

Announcing the audit on social media platform X, formerly Twitter, Hoskinson expressed his emotional distress over the situation, noting that the allegations have felt like personal attacks on his integrity. He also revealed considering stepping back from handling his social media accounts for a period, a move he previously contemplated after other controversies arose.

“We are initiating a comprehensive audit to set the record straight,” Hoskinson stated in a post on Friday, signaling a commitment to transparency and accountability.

To ensure impartiality and thoroughness, IOG has enlisted top-tier firms to carry out the audit. BDO International, a global accounting firm, will handle the financial audit, while McDermott Will & Emery, a prestigious law firm, will oversee the legal aspects of the review.

Additionally, a crypto analytics firm will document the findings to ensure the process remains transparent and accessible to the public. While the audit is set to begin shortly, there is no official timeline for when the results will be made available.

The outcome of this review will be crucial in determining whether the allegations are founded or if they were mere misunderstandings.