Cardano Founder Charles Hoskinson Denies Using Genesis Keys to Seize 318M ADA Tokens

input: Cardano founder Charles Hoskinson has denied allegations that he used Genesis keys to seize 318 million ADA tokens during the Allegra hard fork. He said the tokens were moved to a custodial account for ICO distribution and not taken by the Cardano team.

Cardano founder Charles Hoskinson has denied allegations that he used Genesis keys to seize 318 million ADA tokens during the Allegra hard fork in 2021.

The tokens were moved to a custodial account for ICO distribution and not taken by the Cardano team, he said.

However, claims of the 318 million ADA being seized during the Allegra hard fork are false, and the Input Output Global team is considering legal action against those who continue to assert them.

“We will make no further statements until the closing report is published by the TGE, and we will be sending legal notices to anyone who repeats these claims.”

Earlier this week, NFT artist Masato Alexander claimed on X that Cardano altered the blockchain during the Allegra hard fork.

The network maliciously erased original ADA vouchers and rerouted them to Cardano reserves.

“This HF effectively ERASED the original ICO UTxOs holding the ₳318M and swept the funds into the Cardano reserves.”

The team planned to reissue the funds but deliberately withheld the vast majority and used some to stake and generate an estimated 25 million ADA in rewards.

“Only a tiny fraction went to Intersect. Where did the VAST majority of that ₳318 MILLION actually go after being moved from reserves?”

Alexander said no full audit or traceable path was made available. He added that the Cardano team lacked documentation and transparency.

Hostkinson Explains Redemption and Use of Custodial Account

Charles Hoskinson has refuted claims that he or Input Output Global (IOG) accessed or seized 318 million ADA during the Allegra hard fork.

Instead, he explained that the Allegra upgrade rendered the ADA vouchers unspendable. Afterward, the team moved the tokens into a custodial account managed by the Token Generation Event (TGE) system.

“The Ada vouchers became unspendable after the hard fork. They were rolled into a custodial account controlled by the TGE that then continued redemption for 3 more years to distribute the genesis funds to the original buyers.”

The ICO distribution process remains active as of May 2025, although it is now nearing completion. The final buyer is currently completing his redemption. Once he finalizes the process, the TGE will issue an externally audited report.

This report will cover the entire Cardano ICO redemption history. The TGE will then share it with the founding entities and Intersect, which operates as a Cardano governance body.

Hoskinson confirmed that original buyers had already redeemed 99.8% of all ADA sold during the ICO. The TGE returned the remaining 0.2% and donated it to Intersect. The team followed the same mechanism used to fund the Cardano Foundation.

He explained that the entire process followed the official redemption protocol.

The redemption delays, according to Hoskinson, were caused by multiple issues. First, the company Attain, which had served as the sole vendor of ADA vouchers, went out of business. Second, the Cardano Foundation, under its earlier leadership, refused to take over redemption duties after the protocol launched in 2017, despite having audited the original sale.

These developments forced IOG to extend the redemption window and maintain operations for several more years.

He added that the TGE had to legally wait seven years before recalling unclaimed ADA. That period is now ending, and the final audit report will soon be published. Until then, Hoskinson confirmed there would be no further statements from IOG on the matter.

“Many people at IOG have spent years of their lives, thanklessly, on this program. I will make sure their hard work is broadcast and give the critics one opportunity to apologize and retract their statements after the report is published.”

If false claims continue, Hoskinson said Input Output Global will pursue legal action.

“Should they continue to assert that IOG stole funds, we will pursue legal action,” he warned.

The upcoming report is expected to clarify the complete trail of the Cardano ICO, including all ADA voucher redemptions, Cardano reserves, and the final transfer to Intersect.

Cardano Founder Plans Legal Action Against Public Claims

Masato Alexander claimed that the tokens meant for early investors were mostly staked, generating additional ADA rewards. He also criticized the Cardano team for lacking documentation and transparency.

“Only a tiny fraction went to Intersect,”

Alexander wrote.

“Where did the VAST majority of that 318 MILLION actually go after being moved from reserves?”

He said no full audit or traceable path was made available.

Hostkinson responded by calling the statements false. He said the team is considering legal action.

“As we are now considering litigation against those slandering us, we will make no further statements until the closing report is published by the TGE,” he stated on X.

Hostkinson added that the team will send legal notices to anyone who repeats the claims. Meanwhile, Input Output Global, the