Charles Hoskinson Addresses Allegations of IOHK Theft Involving Unredeemed ADA Tokens

Charles Hoskinson, the founder of Cardano, has resisted mounting allegations that IOHK engaged in theft involving unredeemed ADA tokens.

Charles Hoskinson, the founder of Cardano, has defended IOHK against accusations of theft linked to unredeemed ADA tokens.

During a YouTube AMA from Argentina this weekend, Hoskinson addressed what he described as a “coordinated campaign of defamation.” He also offered new details and context about the complex token redemption process that followed Cardano’s early token sale in Japan.

The discussion arises from a 2017 report by the Cardano Foundation. In a statement to Blockworks, a Cardano Foundation spokesperson said that IOHK’s handling of the situation was a “self-inflicted wound.” The spokesperson added that the Foundation was informed about the redemption process and that its president, Fred Durr, spoke with Hoskinson about the matter.

However, Hoskinson said that the Foundation refused to acknowledge its knowledge of the redemption process.

“We asked them for a simple tweet to confirm they were aware. That could’ve helped deescalate the whole narrative. Instead, they claim it’s a ‘self-inflicted wound' and asked me to personally call Fred,” said Hoskinson.

He added that the spread of false claims - with some suggesting that over 300 million ADA was stolen - is causing reputational harm to Cardano.

“People don’t read into the details. They see headlines like ‘300M ADA theft’ and assume there’s systemic failure. That damages the entire ecosystem.”

To substantiate its position, IOHK will be publishing audit reports and internal documentation, including Slack messages, emails and legal memos.

“We’re acting in good faith. 99.8% of ADA was redeemed by buyers. The remaining 0.2% are void and pending legal resolution in Japan,” said Hoskinson.

He concluded by urging the community to wait for the full audit before drawing conclusions.

This is not the first time that Cardano has faced public criticism or internal ecosystem rifts. In the past, disagreements between IOHK and the Cardano Foundation have surfaced, notably over governance and project direction. Hoskinson has repeatedly advocated for greater unity and accountability among Cardano’s core institutions.

After a third-party distributor was forced to shut down, some participants in Cardano’s early token sale were unable to redeem their tokens.

Earlier this week, reports emerged alleging that a significant portion of ADA tokens, valued at over $100 million, were stolen. These claims sparked outrage among members of the Cardano community.

In response to the mounting allegations, Charles Hoskinson, the founder of Cardano, took to YouTube to address the unredeemed ADA tokens in a no-holds-barred interview from Argentina.

As part of its new regional strategy, IOHK is launching its Lace Wallet project in the South American nation.

The interview also marks the latest chapter in a series of public disagreements between institutions governing the Cardano ecosystem.

Earlier this week, the Cardano Foundation stated that IOHK’s handling of the token redemption process was a “self-inflicted wound.”

The Foundation’s president, Fred Durr, has also spoken with Hoskinson about the matter, according to a spokesperson for the non-profit.

However, in the interview, Hoskinson said that the Foundation refused to cooperate in helping to quell the alleged misinformation.

“We asked the Cardano Foundation for a simple tweet to confirm that they were aware of the process and to advise the community to remain calm. That could’ve helped deescalate the whole narrative.

Instead, they claim it’s a ‘self-inflicted wound’ and asked me to personally call Fred Durr, the president of the Foundation, and for the Foundation to post a statement on X, which they didn’t do.”

He added that the spread of false claims - with some suggesting that over 300 million ADA was stolen - is causing reputational harm to Cardano.

“People don’t read into the details. They see headlines like ‘300M ADA theft’ and assume that there’s some systemic failure in the ecosystem. It’s also damaging the entire ecosystem.”

To substantiate its position, IOHK will be publishing audit reports and internal documentation, including Slack messages, emails and legal memos.

“We’re acting in good faith. 99.8% of the ADA was redeemed by buyers and the remaining 0.2% is void and pending legal resolution in Japan,” he said.

“We ask the community to wait for the full audit and the full facts to come out before they draw any conclusions.”

This is not the first time that Cardano has faced public criticism or internal ecosystem rifts.

In the past, disagreements between IOHK and the Cardano Foundation have surfaced, notably over governance and project direction.

After a third-party distributor was forced to shut down, some participants in Cardano’s early token sale were unable to redeem their tokens.

Earlier this week, reports emerged alleging that a significant portion