Cardano's Hoskinson Accused of Secret Token Manipulation
Cardano Creator Threatens Legal Action Over Assertions of 318 Million ADA Asset Seizure
In a shocking turn of events, Charles Hoskinson, the brainchild behind Cardano, is under fire for allegedly using underhanded tactics to control a staggering 318 million ADA tokens during the 2021 Allegra hard fork. The damning allegations, brought forth by NFT artist Masato Alexander on social media platform X, claim that Hoskinson exploited Genesis keys to seize funds belonging to early Cardano pioneers.
Not Just a Routine Upgrade
According to Alexander's post, the Cardano Allegra Hard Fork wasn't just a straightforward network upgrade; it reportedly included an extra, hidden payload. This payload, Alexander suggests, was instrumental in erasing the initial ICO Unspent Token Outputs (UTxOs) holding the ₳318M and transferring these funds into Cardano's reserves.
"In 2021, the Cardano 'Allegra' Hard Fork (HF) wasn't just a routine upgrade. It contained an extra payload. This HF effectively ERASED the original ICO UTxOs holding the ₳318M and swept the funds into the Cardano reserves," Alexander alleged.
Alexander claimed that although they intended to reissue the funds to their rightful owners, a significant portion remained unaccounted for. He further alleged that while a small percentage was allocated for Intersect, a Cardano governance initiative, most of the tokens were staked to generate an estimated 25 million ADA in additional rewards.
Transparency Under Scrutiny
One of Alexander's primary concerns is the lack of transparency regarding the funds' path in the aftermath of the Allegra HF. He claims that there is no verifiable audit trail, which fuels the suspicions around the handling of the funds.
Although Hoskinson has vehemently denied these allegations, he has affirmed that the ADA vouchers became unspendable after the Allegra hard fork. Hoskinson explained that these assets were transferred to a custodial account managed by the Token Generation Event (TGE). This account continued processing redemptions for three years.
"The Ada vouchers became unspendable after the hard fork. They were rolled into a custodial account controlled by the TGE that then continued redemption for 3 more years to distribute the genesis funds to the original buyers," he asserted.
Hoskinson clarified that the original buyers claimed 99.8% of the ADA sold during the ICO, with only 0.2% of the tokens allocated for Intersect. He further explained that the remaining 0.2% were returned to the TGE and donated to Intersect after seven years.
Warning Shots Fired
While the Cardano team has not released a comprehensive public report, Hoskinson has made it clear that he intends to sue those spreading what he considers false narratives regarding the handling of ADA tokens.
"As we are now considering litigation against those slandering us, we will make no further statements until the closing report is published. We will then send letters to the relevant parties demanding retractions and apologies," the Cardano founder concluded.
The accusations against Hoskinson are currently unproven, with no concrete evidence either supporting or refuting the claims. The situation remains tense as Hoskinson prepares to take legal action against his accusers.
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Sources
- "Cardano founder Charles Hoskinson denies claims he manipulated blockchain to control ADA funds." BeInCrypto, 11 May 2023
- "Charles Hoskinson issues warning to those spreading 'false narratives' about Cardano tokens." Cointelegraph, 10 May 2023
- Alexander, Masato. "Re: Cardano's Alleged HF Manipulation." Social media post, 9 May 2023.
- "Cardano founder Charles Hoskinson denies claims of Hard Fork manipulation." CryptoNewsZ, 11 May 2023
- "Charles Hoskinson Threatens Legal Action After Accusation of Blockchain Manipulation." Coinpedia, 11 May 2023
- The allegations against Charles Hoskinson, creator of Cardano, claim he manipulated 318 million ADA tokens in the 2021 Allegra hard fork with the use of Genesis keys to take funds from early Cardano pioneers.
- NFT artist Masato Alexander posted on social media platform X that the Cardano Allegra Hard Fork included a hidden payload, which reportedly erased the original ICO Unspent Token Outputs (UTxOs) and moved ₳318M into Cardano's reserves.
- Alexander alleges that the funds were intended to be reissued to their rightful owners, but a significant portion remains unaccounted for, with a portion said to have been used for Cardano's Intersect governance initiative and staked for additional rewards.
- Hoskinson has denied the allegations, stating the ADA vouchers became unspendable and were transferred to a custodial account managed by the Token Generation Event (TGE) for redemption for three years.
- As Hoskinson plans to sue those spreading the alleged false narratives, there is no comprehensive report from the Cardano team, and the situation remains tense, with no concrete evidence yet to prove or refute the claims.
