Cardano founder Charles Hoskinson has denied allegations that he used Genesis keys to grab 318 million ADA tokens in the course of the Allegra arduous fork in 2021. He mentioned the tokens had been moved to a custodial account for ICO distribution and never taken by the Cardano crew.

The accusations surfaced on X final week. NFT artist Masato Alexander claimed that Cardano altered the blockchain in the course of the Allegra arduous fork. He mentioned the community erased authentic ADA vouchers and rerouted them to Cardano reserves.

Alexander wrote,

“This HF effectively ERASED the original ICO UTxOs holding the ₳318M and swept the funds into the Cardano reserves.”

He alleged that the crew deliberate to reissue the funds however withheld most of them and used some to stake and generate an estimated 25 million ADA in rewards.

Hoskinson Explains Redemption and Use of Custodial Account

“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.”

The ICO distribution course of stays lively as of Might 2025, though it’s now nearing completion. The ultimate purchaser is at the moment finishing his redemption. As soon as he finalizes the method, the TGE will concern an externally audited report. This report will cowl your entire Cardano ICO redemption historical past. The TGE will then share it with the founding entities and Intersect, which operates as a Cardano governance physique.

Hoskinson confirmed that authentic consumers had already redeemed 99.8% of all ADA bought in the course of the ICO. He said that the TGE returned the remaining 0.2% and donated it to Intersect. The crew adopted the identical mechanism used to fund the Cardano Basis. He defined that your entire course of adopted the official redemption protocol.

The redemption delays, in accordance with Hoskinson, had been attributable to a number of points. First, the corporate Attain, which had served as the only real vendor of ADA vouchers, went out of enterprise. Second, the Cardano Basis, below its earlier management, refused to take over redemption duties after the protocol launched in 2017, regardless of having audited the unique sale. These developments pressured IOG to increase the redemption window and preserve operations for a number of extra years.

He added that the TGE needed to legally wait seven years earlier than recalling unclaimed ADA. That interval is now ending, and the ultimate audit report will quickly be revealed. Till then, Hoskinson confirmed there could be no additional statements from IOG on the matter.

“Many people at IOG have spent years of their lives, thanklessly, on this program. I will make sure their hard work is broadcast and give the critics one opportunity to apologize and retract their statements after the report is published.”

If false claims proceed, Hoskinson mentioned Enter Output World will pursue authorized motion.

“Should they continue to assert that IOG stole funds, we will pursue legal action,” he warned.

The upcoming report is predicted to make clear the whole path of the Cardano ICO, together with all ADA voucher redemptions, Cardano reserves, and the ultimate switch to Intersect.

Cardano Founder Plans Authorized Motion Towards Public Claims

Masato Alexander raised additional issues. He claimed that the tokens meant for early traders had been largely staked, producing extra ADA rewards. He additionally criticized the Cardano crew for missing documentation and transparency.

“Only a tiny fraction went to Intersect,”

Alexander wrote.

“Where did the VAST majority of that ₳318 MILLION actually go after being moved from reserves?”

He mentioned no full audit or traceable path was made accessible.

Hoskinson responded by calling the statements false. He mentioned the crew is contemplating authorized motion.

“As we are now considering litigation against those slandering us, we will make no further statements until the closing report is published,”

he said on X.

Hoskinson added that the crew will ship authorized notices to anybody who repeats the claims. In the meantime, Enter Output World, the corporate creating Cardano, has not issued a separate assertion.

To this point, neither get together has launched transaction information or inner memos. Nevertheless, the neighborhood continues to debate the 318 million ADA concern. Discussions now concentrate on the Allegra arduous fork, ADA voucher dealing with, and claims involving Intersect and the Cardano reserves.

Cardano Value Kinds Bearish Flag After Hoskinson ADA Controversy

On Might 18, 2025, Cardano (ADA) trades at $0.7560, exhibiting indicators of weak spot following the fallout from the 318 million ADA seizure allegations. The controversy surrounding Charles Hoskinson and claims associated to the Allegra arduous fork seems to have affected investor sentiment, triggering a pointy sell-off.

Cardano has now fashioned a bearish flag sample, a technical construction that usually alerts continuation of a previous downtrend after a brief upward transfer. The sample consists of a steep drop (the flagpole), adopted by a rising parallel channel (the flag).

If confirmed, this bearish flag means that Cardano may fall by almost 31% from its present stage of $0.7560, focusing on round $0.5112. This stage marks the projected breakdown primarily based on the peak of the earlier drop added beneath the flag assist.

The each day chart exhibits ADA breaking beneath the higher channel of the flag after touching a latest excessive close to $0.81. The price at the moment checks the decrease trendline of the flag. A decisive breakdown may validate the bearish construction.

The Relative Power Index (RSI), a momentum indicator, at the moment reads 59.11, down from its earlier peak. It suggests slowing shopping for stress as ADA approaches key assist. The 50-day Exponential Transferring Common (EMA) sits at $0.7217, and ADA is barely holding above it. Dropping this stage could additional affirm bearish management.

Trading quantity stands at 7.35 million, decrease than ranges seen in the course of the earlier breakout. This weak participation provides to the bearish case. If the flag breaks to the draw back, the following sturdy assist lies round $0.51, which matches the goal calculated from the sample.

Cardano should keep above the channel’s decrease boundary and the 50-day EMA to keep away from deeper losses. Failing to take action could expose the asset to accelerated decline towards the $0.51 zone, representing a doable 31% drop from the present price.

The broader market response to Hoskinson’s authorized threats and the continuing TGE redemption report delay continues to weigh on ADA’s price trajectory.