Charles Hoskinson, founder of Cardano (ADA), is under fire after new accusations about the processing of unclaimed tokens from the early phase of the project. According to critics, he would have been responsible in 2021 for the relocation of 318 million ADA – worth around $ 619 million at the time – to a centrally managed wallet, without communicating transparently towards investors.
What exactly is going on?
The controversy arose after a post by X user Masato Alexander, who claimed that in 2021 developers added the ‘Return Redemaddroreserves’ function to the Cardano protocol. This function is said to have moved unclaimed ADA funds, mainly from early Japanese investors during the ICO of Cardano, to network reserves.
According to Alexander, these funds have been moved to a centrally managed wallet via a Move Instantaneous Rewards (MIR) transaction. This happened without clear communication or compensation for the original investors.
Alexander accused Hoskinson of having been in control of these funds through a strategic protocol change. He demanded complete transparency about the destination of these funds. Moreover, he suggested that insiders at Input Output (Io), the company behind Cardano, talk to him about internal decisions.
Hoskinson hits back
Hoskinson left no doubt that he finds the allegations unfounded. In a response, he stated: “You continue to read people. The ADA vouchers became unpidious after the hard fork. They were transferred to a storage account managed by the TGE. This then continued for another three years by changing the genesis funds for the original buyers.”
He warned that further accusations can lead to legal action. Hoskinson stated: “If you continue to imply that Io has stolen money, I will sue you. This is my last warning.”
Yet Hoskinson does not only get criticism. The well-known crypto analyst Jonathan Morgan defended the Cardano founder. He stated that the transaction was not a rewriting or manipulation of the blockchain, but a legitimate and transparent operation within the Cardano governance system. He emphasized that most funds were sent back to the original ICO buyers. Only a small part was re -used for community development.
Ada Koers remains strong
The course of Ada does not care much about the commotion. Bitcoin (BTC) is currently approaching the $ 100,000 limit and this gives the entire crypto market the wind. At the time of writing, ADA is around $ 0.72, an increase of 4.5% in the last 24 hours. With this, Ada is taking a nice step to the resistance zone between $ 0.80 and $ 0.85.
Source: https://newsbit.nl/cardano-onder-vuur-werd-619-miljoen-aan-ada-verkeerd-gebruikt/
