Cardano plans to release an ADA audit report in August to address claims of fund misuse during the 2021 hard fork.
Legal action is being considered by Cardano’s founder after facing accusations of misusing over $600 million ADA tokens.
The audit will show Input Output Global’s ADA holdings and aims to rebuild trust within the Cardano community.
Input Output Global (IOG), the firm behind Cardano, is preparing to release a full audit of its ADA holdings. The report comes after months of scrutiny over alleged misappropriation of $600 million in ADA tokens. Charles Hoskinson, founder of Cardano, confirmed that the initial version of the audit had been reviewed.
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The audit is on track for public release by mid-August. It will be published on a dedicated website. The platform will also host supporting historical documents from the original ADA sale. The findings aim to provide a clear picture of IOG's financial activity, especially during the 2021 hard fork known as Allegra.
Allegations Trigger Community Tension
Community concerns grew after claims surfaced that IOG manipulated the Cardano ledger to seize 350 million ADA. These accusations pointed to misuse of a genesis key during the 2021 network upgrade. NFT artist Masato Alexander was among the early voices raising concerns.
Hoskinson denied the allegations and said IOG never retained unclaimed ADA. Instead, forfeited tokens were reportedly transferred to Intersect, a nonprofit working with the Cardano ecosystem. The audit is expected to address these specific claims and offer evidence of proper fund handling. Meanwhile analysts are predicting that ADA could hit $1.6 as the bull cycle continues.
Legal Action Now Under Consideration
The ongoing issue may extend beyond community debate. Hoskinson is now pursuing legal action against individuals behind the allegations. He is seeking counsel with a law firm which specializes in defaming. The release of the audit can be critical in these proceedings.
The controversy has affected public trust. Some community members remain skeptical about legal threats directed at blockchain participants. Others have voiced concern that potential lawsuits may impact the platform's reputation more than the initial claims.
Impact on Ecosystem and Market
Cardano’s ecosystem has continued to grow despite the situation. Coinbase recently launched wrapped ADA on the Base network, expanding DeFi access. Meanwhile, Cardano’s price rose over 4% amid wider market activity.
The upcoming audit could influence future engagement from investors and developers. Many are watching to see how the findings impact confidence. A detailed livestream explanation of the report is planned following publication.
IOG’s release of the ADA audit is now a key event in the platform’s recent history. It aims to resolve questions over token control and community trust.
