The Cardano Foundation is preparing to release an audit report on its treasury holdings

after fresh allegations surfaced claiming misappropriation of roughly $600 million worth of ADA tokens.

Fresh allegations have emerged claiming that roughly $600 million worth of ADA tokens were misappropriated during the 2021 Allegra hard fork on the Cardano network, leading to renewed scrutiny of founder Charles Hoskinson and the Cardano Foundation is preparing to release an audit report on its treasury holdings.

Non-fungible token artist Masato Alexander brought up the allegations on X, stating that community members had attempted to contact the Cardano Foundation multiple times but to no avail.

"We're now being threatened & told to stop poking our nose into matters that don't concern us. We're simply trying to understand how & where the remaining ADA went after the snapshot for the hard fork. It's concerning that we're met with hostility & intimidation."

The snapshot for the Allegra hard fork occurred on Oct. 24, 2021, with a secondary, "Move Instantneous Rewards" transaction showing a transfer of over 318 million ADA tokens, which enabled the funds to flow from reserve pools into staking or treasury allocations.

However, ADA redemptions stayed open for another three years after the transaction, responded Hoskinson, adding that the "vast majority of that 350 million ADA was redeemed by the original buyers," a process that took a total of seven years.

"IOG never gave itself 350 million unclaimed ADA. This is a lie. The vast majority was claimed, and the remaining that was forfeited after seven years of waiting was donated to Intersect," Hoskinson wrote in a May 6 X post.

According to a report by CCXV, the unclaimed ADA tokens were supposed to be returned to the Intersect Collective, a non-profit organization dedicated to fostering cooperation and innovation in the Cardano ecosystem.

"The snapshot for the Allegra hard fork on October 24, 2021, was used to allocate unclaimed ADA to the community and move the remaining to treasury and staking, as planned and announced at the time. It is interesting to see some community members still care about this topic. I wish more cared about the people who didn’t claim their snapshot balances.

After seven years, the unclaimed ADA was donated to the Intersect Collective, a non-profit organization dedicated to fostering cooperation and innovation in the Cardano ecosystem. The Collective will use these resources to further its mission and continue to support the Cardano community."

The non-fungible token artist also pointed out that the community members were threatened and told to stop poking their nose into matters that don't concern them.

"We're simply trying to understand how and where the remaining ADA went after the snapshot for the hard fork. It's concerning that we're met with hostility and intimidation, especially when we're trying to be respectful and engage in open communication."

The community members are interested in learning more about the status of the remaining ADA tokens and how they will be utilized to benefit the Cardano ecosystem. They are hoping to schedule a Zoom meeting with the Cardano Foundation to discuss this further.

"We're not here to cause trouble or interfere. We're passionate about Cardano and want to see it succeed. We believe that transparency and accountability are crucial for any project, especially one that has the potential to impact so many lives."

Earlier this year, rumors had swirled within the Cardano community concerning the alleged misappropriation of roughly $600 million in ADA tokens during the 2021 Allegra hard fork.

According to reports, community members had reached out to the Cardano Foundation on several occasions to inquire about the status of the remaining ADA tokens after the snapshot for the hard fork.

However, their attempts were met with indifference, and they were threatened to be blocked or sued if they persisted.

In response to the allegations, Charles Hoskinson, the founder of Cardano, said that he was "deeply hurt" by the community's mistrust after fresh claims emerged alleging misappropriation of roughly $600 million worth of ADA tokens during the 2021 Allegra hard fork.

Confirming that an audit report related to the hard fork is in progress, which will be released by the Cardano Foundation, Hoskinson stated that he was deeply saddened by the community's reaction.

"I am deeply hurt that people would think I would steal from them or act against their best interest. I have dedicated my entire life to building things that matter and to making a positive impact on the world around me. The community's trust is paramount to me, and I would never do anything to betray it," said Hoskinson.

According to a report by CCXV, a secondary transaction, "Move Instantneous Rewards," was executed on Oct. 24, 2021, to enable the funds to flow from reserve pools into staking or treasury