The Cardano Foundation is preparing to release a full audit of its treasury holdings following new allegations that Charles Hoskinson, founder of Cardano, misappropriated over $600 million worth of ADA tokens.
The controversy stems from a 2021 transaction during the Allegra hard fork, when 318 million ADA—valued at approximately $619 million at the time—were moved from presale addresses into the Cardano reserves. Critics have questioned the legitimacy of the transfer and its oversight.
In response, Hoskinson released a blistering video statement, condemning crypto media outlets for spreading what he called baseless, unverified accusations without offering Cardano the chance to comment.
“You’re publishing things where there’s no victim, no lawsuit, no regulatory body stepping in, and no arrest,” he said. “An allegation of $600 million of theft, and you didn’t even come to us for comment?”
Hoskinson pointed out that the fifth-largest auditor in the world is currently auditing the sale, and challenged the journalistic integrity of those propagating the claims—specifically calling out CoinTelegraph.
He went on to propose a blockchain-based solution to misinformation in media: veracity bonds.
“How much would you be prepared to lose if it turns out that you propagated a false narrative? $10,000? $100,000? $1 million?”
Hoskinson suggested the crypto industry adopt prediction markets and staking mechanisms to hold media accountable for disinformation, adding, “Why should we listen to you if you’re not willing to stand behind your reporting?”
As the Cardano Foundation prepares to publish the audit, Hoskinson’s comments underscore growing tension between crypto founders and industry media, and the broader demand for credible, transparent reporting in Web3.
Kosta Gushterov
Reporter at Coindoo
Kosta has been a part of the team since 2021 and has solidified his position with a thirst for knowledge, incredible dedication to his work and a “detective-like” mindset. He not only covers a wide range of trending topics, he also creates reviews, PR articles and educational content. His work has also been referenced by other news outlets.
Source: https://coindoo.com/charles-hoskinson-responds-to-600m-ada-allegation-slams-crypto-media-for-cesspool-journalism/