$$ADA Financial dramas are unfolding one after another but are not alike in the crypto universe. The latest development: Cardano, long praised for its academic rigor, faces an explosive accusation of embezzling approximately $600 million in ADA. Charles Hoskinson, the project’s guiding figure, promises an audit. This case could redefine trust at the very heart of decentralized governance. Cardano is at the center of a scandal after accusations of embezzling $600M in ADA during the Allegra hard fork.

Charles Hoskinson firmly denies and promises a comprehensive audit to clarify the situation.

The crisis raises questions about transparency and governance in the crypto ecosystem.

A Storm of Suspicions Around the Allegra Hard Fork

The fire has been smoldering since an NFT artist, Masato Alexander, claimed that Hoskinson quietly used a “genesis key” to rewrite the ledger during the 2021 Allegra hard fork. Supporting this claim: a so-called Move Instantaneous Rewards transaction from October 24, 2021, which transferred 318 million ADA from reserves to to be a treasury fund. The accusation speaks of a total embezzlement amounting to $619 million, a significant portion of the Cardano war chest.However, Hoskinson presents a more mundane timeline: these tokens originated from ICO allocations that remained unclaimed. According to him, the majority of the targeted 350 million ADA were claimed by their initial buyers over seven long years — and the remaining shortfall was paid to Intersect, the community governance body. “IOG never pocketed such a sum,” he insists, dismissing the idea of a hidden slush fund.#writetoearn

This denial was not enough to calm Twitter: influencers, on-chain analysts, and ordinary users dissect every UTXO searching for anomalies. Some recall the opacity of other projects during previous crises; others emphasize that Cardano built its reputation on formal rigor.

The perception gap is stark: on one side, a protocol aiming to be exemplary; on the other, the image of a founder suspected of accounting manipulation.