Cardano Founder Charles Hoskinson Clarifies the Ongoing ₳318 Million ADA Redemption Dispute

He stated that the unclaimed funds were never accessible through private keys. In a post on X, Hoskinson explained that the Cardano ICO used a redemption system

Cardano founder Charles Hoskinson has issued further clarification on the ongoing ₳318 million ADA redemption dispute. He stated that the unclaimed funds were never accessible through private keys.

In a post on X, Hoskinson explained that the Cardano ICO used a unique redemption system linked to a KYC-relevant database, not wallet addresses like those usually encountered in crypto. This system was designed to map each redemption request to the database via a special tracking address.

The TGE and original voucher vendor, Attain, would then use this information to follow up with buyers and assist them in completing the final stage of redemption. However, when Attain went out of business and some buyers became unreachable, the team decided to transition from a passive to an active redemption mode.

“This step was necessary to resolve pending transactions and fulfill final allocations. A new redemption mechanism would have to be established and an active instead of passive process needed to begin,” explained Hoskinson.

Furthermore, Hoskinson clarified a common misconception about the ownership of ADA voucher addresses in the genesis block. He emphasized that individual investors didn’t control these addresses; rather, the system utilized them as part of the final redemption step. This was designed to create a public record of completed transactions.

“Over 9,500 of the 9,900+ buyers used this mechanism prior to the sweep. The remaining ones either were unwilling or unable to do so,” added Hoskinson.

This clarification directly contradicts claims that users held private keys to those funds and were unjustly locked out of spending them.

Developer Will Release The Code and Audit Publicly

Moreover, Hoskinson confirmed that developer Serokell will be releasing the original code for ADA voucher redemption. This release will be part of the upcoming external audit report, which will also include a detailed timeline of the redemption process.

The report, prepared by an independent accounting firm, aims to provide complete transparency over how the Cardano team managed unclaimed tokens after the initial ICO period. It will also verify the claim that buyers redeemed 99.8% of ADA vouchers, with the remaining 0.2% later being repurposed for crucial governance-related development through Intersect.

While Hoskinson’s new explanation contributes to understanding the technicalities of the redemption system, questions remain within the community. Especially regarding the small percentage of ADA reportedly donated to Intersect.

The external audit report, once released, will be the final piece of the puzzle, settling the ongoing debate and providing the community with a definitive answer.

As the protocol dispute continues, Cardano’s price action shows signs of technical recovery. On the 4-hour chart, ADA has finally broken out of a falling parallel channel. This breakout came with rising volume, suggesting renewed bullish momentum.

At the time of writing, ADA trades at $0.805, with the Relative Strength Index (RSI) standing at 69.38, just below overbought territory. This reading indicates strong upside pressure but hints at a possible short-term cooldown if momentum slows. A clean close above $0.81 could open the door to retesting recent highs around $0.85.