Cardano Founder Hits Back at Critics as ADA Audit Clears Funds Misuse Claims

The Cardano Founder has pushed back against critics amid claims of fund misuse. This came after a long-awaited audit of the network’s ADA Voucher Program dismissed the allegations.

Cardano Founder Calls for Apologies From Critics

The Cardano Founder, Charles Hoskinson, who faced months of accusations on social media, took to X to respond to critics. In a post, he wrote, “Waiting for the apologies to come rolling in.” This expressed his frustration at what he repeatedly described as baseless claims.

The accusations alleged that Cardano insiders diverted tokens meant for Voucher Holders. They also claimed it used aggressive or deceptive sales tactics and even altered blockchain upgrades to block voucher redemptions. Some critics further accused Hoskinson of rewriting the ledger during the 2021 Allegra hard fork to seize $619 million.

The Cardano Founder immediately denied these claims. He stated that the funds were moved into a custodial account managed by the TGE.

Law firm McDermott, Will & Schulte conducted the months-long investigation. They also partnered with accounting giant BDO to produce a 128-page report on the accusations. The audit found that each of the allegations lacked merit, confirming that the Voucher Program was handled in accordance with its stated terms.

The report also determined that 14,282 vouchers had been successfully redeemed. This represented 99.7% of ADA allocated through the program. Safeguards were in place to prevent misrepresentations during sales. Investigations were also carried out against distributors who breached terms.

Audit Report Clears Doubts Over “Missing ADA”

One of the allegations centered on 318 million unredeemed ADA, which critics claimed had been improperly seized. According to the audit, these tokens were moved into reserves following the conclusion of the Byron era. Additionally, it revealed that a specific Post-Sweep Redemption Project was established to track down and handle unused coupons.

In summary, only a small number of vouchers remained unredeemed, and nearly all qualified purchasers had received payment.  The results directly refuted allegations made by investors that Hoskinson diverted the tokens using a “genesis key.”  The report confirmed no such misuse occurred.

Hoskinson had consistently denied the allegations, calling them fabrications designed to tarnish his reputation. In July, the Cardano founder disclosed plans to release the audit publicly. Although initially expected in August, the report was delayed to allow for additional checks before its September publication.

Clearing these allegations could ease investor concerns surrounding Cardano. In a new development in its ecosystem, Hoskinson hinted at the USD1 stablecoin launch on the Cardano blockchain.

The Cardano Founder emphasized that the review reinforced the credibility of Input Output Global (IOG), the firm behind Cardano. He argued that the findings prove ADA remains one of the most transparent projects in the blockchain space.