Charles Hoskinson, the founder of Cardano (Ada), is again under fire. In a series of messages on X, he responded fiercely to allegations. According to these accusations, Hoskinson would have diverted 318 million ADA in 2021, worth around $ 619 million, to a controlled retention account without transparency 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), 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 and even 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, which then continued to exchange the genesis funds for the original buyers for another three years.”
He warned that further accusations can lead to legal action:
“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 and 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 and only a small part was redeveloped 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 cryptomarkt the wind in the back. 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, which has not been tested for months.
Source: https://newsbit.nl/cardano-onder-vuur-werd-619-miljoen-aan-ada-verkeerd-gebruikt-2/
