Charles Hoskinson Threatens to Sue over Claimed Takeover of 318 Million ADA Tokens!

Jakarta, Pintu News – Charles Hoskinson, founder of Cardano, is preparing legal action against individuals who accuse him of manipulating the blockchain to control 318 million Cardano tokens (ADA).

Check out the full information here!

Blockchain Manipulation Allegations by Hoskinson

Last week, NFT artist Masato Alexander claimed that during Cardano’s “Allegra” hard fork, the network overwrote its allocation of unused tokens from the original token sale. Then, those tokens were redirected to Cardano’s reserves.

Alexander stated that while there was an intention to reissue the funds to the rightful owners, most of the funds were withheld.

He also claimed that only a small portion of the tokens were used to fund Intersect, a Cardano governance initiative. Most of the tokens, according to him, were staked to generate additional rewards of around 25 million ADA.

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Hoskinson’s response to allegations

However, Hoskinson has strongly rejected the allegations. In a response posted on X, he described the claims as “lies” and explained that ADA vouchers became unusable after the Allegra hard fork.

Hoskinson explained that the assets were transferred to a custodial account managed by Token Generation Event (TGE). This account continues to process redemptions for three years.

He added that the original buyers ended up claiming 99.8% of the ADA sold during the Initial Coin Offering (ICO). Only 0.2% of the tokens were allocated to fund Intersect.

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Possible Legal Action and Transparency of Process

Although the Cardano team has yet to release a full public report, Hoskinson noted that the redemption process is still ongoing. He warned that he will sue Alexander and others who repeat the claims if they continue to accuse Global Output Input of stealing funds.

“As we are now considering litigation against those who defamed us, we will make no further statements until the closing report is published. We will then send letters to relevant parties demanding retractions and apologies,” the Cardano founder concluded.

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Reference

• BeInCrypto. Cardano’s Hoskinson Slams False Narratives About ADA ICO Funds. Accessed on May 19, 2025
• Featured Image: Cryptonomist