Tensions Flare in the Cardano Community as Founder Charles Hoskinson Faces Serious Accusations

The claims, circulating on social media platform X, suggest that a past blockchain upgrade was used to redirect investor funds—an assertion that Hoskinson firmly denies and is now preparing to challenge in court.

Crypto community platform, X, has seen escalating tensions rise between members of the Cardano community following serious accusations against its founder, Charles Hoskinson, regarding the alleged mishandling of over 300 million ADA tokens.

The claims,suggest that a past Cardano blockchain upgrade was used to redirect investor funds from their original allocations into network reserves, an assertion that Hoskinson firmly denies and is now preparing to challenge in court.

A recent post by NFT creator Masato Alexander on X, previously known as Twitter, has brought to light a critical issue concerning the alleged mishandanding of investor funds during Cardano’s 2021 Allegra hard fork.

According to Alexander, unclaimed ADA tokens from Cardano’s initial coin offering (ICO) were erased from their original allocations and transferred into network reserves.

Further assertions by Alexander claims that most of these tokens were staked for profit, generating millions in additional ADA rewards, yet only a small portion was allocated to Cardano’s governance body, Intersect, for its activities.

However, critics of the project highlight the lack of transparency and audit trail to validate the decisions made. They note the absence of detailed documentation on these large-scale token movements raises questions about internal control and accountability.

In response to these claims, Hoskinson took to X to issue a statement branding the allegations as entirely false.

The crypto founder explained that the affected tokens were part of a redemption process tied to Cardano’s Token Generation Event (TGE) and were inaccessible to users after the Allegra fork.

Moreover, Hoskinson stated that 99.8% of the tokens sold during the ICO have since been claimed by original investors, with the remaining 0.2% being allocated to fund Intersect.

According to a report by Benzinga, Hoskinson has also alluded to the possibility of legal action against individuals who continue to spread what he deems to be fabrications.

The crypto leader issued a stark warning that he may pursue defamation suits once the project’s final redemption report is made public.

In a separate statement, leadership at Cardano have opted not to issue further comments until the relevant codes and final report are released.

However, those interested can follow the discussion on X, with those interested able to follow the discussion with the tag #Cardano.