Charles Hoskinson, co-founder of Cardano, has confirmed that a full audit of Input Output Global’s (IOG) ADA holdings is on track for release by mid-August. The audit comes amid intense scrutiny and online speculation over a $600 million ADA controversy.
🧾 The Background: Allegations & Online Misinformation
Back in May 2025, viral posts on social media accused IOG, the development company behind Cardano, of misusing a "genesis key" during the 2021 Allegra hard fork to self-allocate roughly 350 million ADA — claims that amount to nearly $600 million in current valuation.
Hoskinson swiftly rejected the allegations, calling them “false and damaging.”
> “I’m absolutely disgusted… The headlines I’ve seen are beyond damaging and will take months or years — and millions of dollars — to undo,” Hoskinson wrote on May 20.
🧠 What the Audit Will Cover
In response to the uproar, Hoskinson committed to a transparent audit of IOG’s ADA-related activities. On July 20, he reaffirmed that the report is progressing well and remains on schedule for mid-August.
The audit will address whether IOG misused unclaimed ADA
It will explore the origin and current state of the 350M ADA in question
A dedicated website will host the full report and supporting historical documentatio
Hoskinson also stated he will personally read the audit report live on stream when it's published.
📌 Clarifications from the Cardano Team
Hoskinson clarified that:
Most of the 350 million ADA had already been claimed by rightful owners
The remaining tokens were eventually transferred to Intersect, a governance body within the Cardano ecosystem, after a 7-year grace period
He is consulting with a defamation law firm regarding potential legal action against those spreading false claims
Joel Telpner, Chief Legal and Policy Officer at IOG, also confirmed the audit timeline.
💬 Community Concerns & Expectations
While many welcome the audit, some Cardano community members are questioning:
Who set the scope and criteria of the audit?
Will the report be independently verified?
How transparent will the process truly be?
Hoskinson maintains that the audit is being done with full accountability and will be made public in full.
🔎 What’s at Stake
With accusations flying and trust on the line, the upcoming audit is shaping up to be a pivotal moment for Cardano.
Whether it clears the air or intensifies debate, August may define the future of Cardano’s leadership and
credibility — especially with founder Charles Hoskinson at the center.$BNB