Charles Hoskinson, the founder of Cardano (ADA), has publicly addressed accusations related to the alleged mishandling of Cardano’s $600 million treasury, calling the claims “baseless” and “deeply hurtful.” He further committed to a full independent audit of the treasury funds to ensure transparency and restore community trust.
“I’ve dedicated over a decade of my life to building Cardano with integrity. These attacks hurt — not just me, but the entire community,” Hoskinson stated on social media platform X (formerly Twitter).
The Allegations: Community Questions Treasury Oversight
The controversy began when several influencers and developers within the Cardano ecosystem raised concerns about the lack of clarity in the allocation and use of treasury funds, which currently exceed $600 million in ADA. They questioned whether funds were being used effectively to support the ecosystem’s development.
Some critics even implied that there might be mismanagement or favoritism in funding distribution — a serious charge that quickly went viral within the crypto community.
Hoskinson Responds: “Let’s Clear the Air”
In a detailed video response, Hoskinson outlined the mechanisms behind the Cardano treasury governance model, emphasizing its decentralized structure and the role of community voting in fund disbursements. However, he acknowledged that communication gaps may have led to misunderstandings and vowed to do better.
He confirmed that an independent third-party audit would be commissioned to review the entire treasury system, including past fund allocations and governance practices.
“If there are flaws in the process, we’ll find them and fix them. But we won’t allow false narratives to derail years of honest work,” he said.
Cardano Community Reacts
Reactions from the Cardano community have been mixed. While many showed support for Hoskinson and praised his decision to conduct an audit, others demanded more transparent reporting and community involvement in treasury decision-making.
The incident has sparked renewed discussions about governance in blockchain ecosystems, especially for projects managing large treasuries.
What’s Next for Cardano?
The audit process is expected to begin in the coming weeks, with findings to be made public, according to Hoskinson. The move could set a precedent for other blockchain projects to follow, particularly as the crypto space continues to mature and attract scrutiny from both regulators and users.