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Hoskinson Orders Expanded Audit After Allegations He Used Genesis Key to Seize $619 Million in ADA
- Charles Hoskinson announced that a comprehensive audit of Input Output Global’s (IOG) ADA treasury is almost done and should be publicly released by mid-August.
- The audit was initiated after Hoskinson faced accusations of misusing a “genesis key” during the 2021 Allegra hard fork to seize US$619 million in ADA and improperly acquiring over US$600 million unclaimed ADA.
- Hoskinson denies all claims, calling them false and defamatory, and plans to pursue legal action against those spreading misinformation while also preparing to present the full audit report live to ensure transparency.
Charles Hoskinson says a full audit of Input Output Global’s (IOG) ADA treasury holdings is nearing completion and could be released publicly by mid-August, pending final revisions.
The Cardano founder confirmed over the weekend that he’s pushing for more detail and clarity in the report before greenlighting publication.
I just received the first copy of the audit report,” Hoskinson posted on X. “I requested a lot more detail and context in several areas, but it’s shaping up quickly.
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The audit was first promised in May after Hoskinson faced community backlash over allegations that IOG had improperly acquired US$600 million (AU$920 million) worth of ADA.
The accusations included claims that 350 million unclaimed ADA were seized by the company, and that Hoskinson used a genesis key to rewrite the ledger during Cardano’s 2021 Allegra hard fork, a move that allegedly transferred control of US$619M (AU$948M) in ADA to IOG.
Hoskinson has denied the claims outright, calling them false and defamatory. “IOG never gave itself 350 million unclaimed ADA. This is a lie,” he wrote in a May 6 post. “The vast majority was claimed, and the remaining that was forfeited after seven years of waiting was donated to Intersect.”
The public scrutiny included posts from NFT artist Masato Alexander, who stated that the co-founder used a genesis key to “rewrite and take control” of the Cardano Ledger. This prompted Hoskinson to not only initiate the audit but also begin preparing a legal response.
He confirmed plans to meet with a defamation law firm to explore legal options against those spreading what he described as deliberate misinformation. “No matter how many times people lie, they cannot change reality,” Hoskinson said.
Once finalised, the audit will be published on a dedicated website, accompanied by other historical records from the original ADA sale. Hoskinson also intends to read the full report live on stream when it goes public.
Despite the allegations, ADA remains strong, trading at US$0.88 (AU$1.35), according to CoinGecko data. This represents an increase of 20% in the last seven days and 52% in the past two weeks.
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Author
José Oramas
José is a journalist and translator with a keen interest in blockchain and cryptocurrencies.
