Founder Charles threatens to sue over allegations of seizing 318 million ADA

Cardano founder Charles Hoskinson is preparing to take legal action against individuals who claim he manipulated the blockchain to control 318 million ADA tokens.

The allegations, which recently surfaced on the social media platform X, suggest that he used his Genesis keys in 2021 to seize funds belonging to early investors.

Cardano's Hoskinson accused of secretly altering the blockchain to control ADA funds

Last week, NFT artist Masato Alexander claimed that during Cardano's hard fork "Allegra," the network rewrote some unspent token allocations from the original token sale. It then redirected those tokens to Cardano's reserves.

"In 2021, Cardano's hard fork 'Allegra' was not just a routine upgrade. It contained additional payload. This hard fork effectively erased the original ICO UTxOs containing ₳318 million and withdrew the funds to Cardano's reserves," Alexander wrote.

Alexander claimed that despite their intention to reissue the funds to their rightful owners, they alleged that they retained a large portion of it.

He also claimed that only a small percentage of the tokens funded Intersect, which is a Cardano governance initiative. He alleged that most of the tokens were staked to generate additional rewards estimated at 25 million 87492347154