An independent audit has confirmed the legitimacy of actions taken by Cardano founder Charles Hoskinson, dispelling allegations of misappropriating ADA tokens.
Allegations of Misappropriation
In May 2025, X user Masato Alexander accused Hoskinson of unilaterally using genesis keys to control 318 million ADA tokens. Alexander claimed Hoskinson's actions led to a rewrite of the Cardano ledger, comparing the situation to the 2016 DAO hack.
Results of the Independent Audit
The independent audit released on September 3 concluded that all fund movements were legitimate and adhered to proper protocols. Auditors found no evidence of unauthorized appropriation or misuse of community funds during the redemption process.
ADA Price Dynamics
Despite the audit's favorable findings, ADA price declined by 4% within 24 hours following the report's release. Analysts observed that the price movement may be reflective of broader market weakness rather than a direct response to the audit.
The audit provided essential clarification regarding the allegations against Hoskinson, yet market reactions indicated that investors remained focused on technical factors rather than audit outcomes.
