The scandal surrounding the recovery of Cardano (ADA) resurfaced from the initial coin offering era -
Where Cardano announced that the ADA recovery process will be subject to external auditing.
The decline of ADA extended to 16% amidst a heated debate about the "scandal."
The scandal surrounding the recovery of 318 million Cardano (ADA) from 2021 resurfaced over the weekend, sparking heated controversy.
However, some allegations linked the scandal to money laundering, prompting Joel Telpner, Cardano's legal chief, to issue a warning. He said, "But when statements cross the line and become defamation, they should and will not be ignored."
The story of the ADA "recovery"
The alleged scandal made headlines in the cryptocurrency world in early May, involving Cardano founder Charles Hoskinson.
According to these allegations, $318 million of unclaimed ADA funds came from initial coin offering participants who initially did not respond. However, some claim the funds were repurposed for other uses, sparking allegations of "fraud."
For his part, Hoskinson denied these allegations. The Cardano team exonerated itself from any wrongdoing, explaining that it had exhausted all avenues to communicate with participants.
According to Daniel Tetsuyama, one of the involved Cardano figures, the unclaimed funds were reallocated in accordance with regulations and were not stolen as alleged.
Cardano ADA
Source: Daniel Tetsuyama/X
On the contrary, some critics believe that participants in the initial coin offering were subjected to a losing deal and should be compensated.
To clarify these speculations and set the record straight, Telpner referred to conducting an independent audit.
"An audit will be conducted by independent external parties, and its results will be published. As a result, we know that this ongoing speculation about the ADA recovery process will necessarily give way to independently verified facts."
It is worth noting here that the discussion has been marked by a slight decline in open interest (OI) to below $400 million. This indicates a decrease in interest in speculating on ADA in the futures market.
Additionally, the cumulative volume delta (CVD) index fell, reflecting decreased demand in the spot market over the weekend. This generally indicates a slight slowdown in its recent rise.
Cardano ADA
Source: Coinalyze
On price charts, ADA has dropped 16% from its peak of $0.86 after facing rejection at the upper range of the downward trend channel. However, the drop to $0.76 remains its lowest point, and its price was above short-term moving averages.
This can be seen as an indicator of short-term strength. However, the optimists will only survive if ADA decisively surpasses the $0.85 level.
Cardano
Source: ADA/USDT, TradingView
