TLDR
- Forensic audit found 99.7 percent of ADA vouchers were correctly redeemed
- Hoskinson urges crypto firms to boycott Cointelegraph over false reporting
- Audit confirmed unclaimed ADA funded ecosystem grants via governance body
- Cointelegraph editor Jon Rice accused of refusing to retract $600M claim
Charles Hoskinson, founder of Cardano, is calling for accountability after being accused of misusing ADA vouchers worth $600 million. An independent audit has cleared him of wrongdoing, but crypto news outlet Cointelegraph continues to face scrutiny for refusing to retract its earlier coverage of the allegations.
ADA Voucher Allegations Spark Controversy
The dispute began in May when NFT artist Masato Alexander alleged that Hoskinson used his genesis key to alter the Cardano ledger. He claimed this manipulation allowed Hoskinson to misappropriate $600 million worth of ADA vouchers. Alexander described the alleged incident as “one of the biggest reorgs in blockchain history.”
Cointelegraph gave wide coverage to the accusations, amplifying the claims and fueling speculation across the crypto community. Hoskinson denied the allegations, stating that most ADA vouchers were properly redeemed by early token sale participants. The issue escalated as questions over accountability and transparency spread within the industry.
Forensic Audit Clears Hoskinson
To address the controversy, Input Output Global commissioned an independent forensic review. The investigation was conducted by McDermott Will & Emery and BDO. The audit spanned 150 pages and tracked the movement and redemption of ADA vouchers.
Findings showed that 14,282 vouchers had been redeemed, representing 99.7 percent of all issued vouchers. Only 14 vouchers remain unclaimed, which have since been redirected to fund ecosystem grants through Intersect, a Cardano governance organization. The report found no evidence of insider fraud or misuse of funds.
The audit also clarified the source of the $600 million claim. At ADA’s all-time high, the value of unredeemed vouchers was estimated at that level. However, most vouchers were later redeemed, leaving only a small amount outstanding. A transfer of 68.25 million ADA to Cardano Development Holdings was also confirmed to be legitimate and unrelated to voucher redemption.
Hoskinson Challenges Cointelegraph
Despite the audit’s findings, Cointelegraph has not withdrawn its earlier report. Hoskinson criticized the outlet, accusing editor-in-chief Jon Rice of refusing to retract the allegations. He also alleged that Cointelegraph is preparing to frame Input Output Global’s request for corrections as undue pressure.
“Requiring basic journalistic integrity does not constitute pressure,” Hoskinson said, responding to claims that IOG had attempted to influence coverage. He further accused the publication of spreading misinformation that damages both Cardano and the wider crypto industry.
Boycott Call Against the Outlet
Hoskinson has urged other cryptocurrency projects to take action against Cointelegraph. In a post on X, he advised companies to pull advertisements from the outlet and to avoid participating in its events. According to him, continued association gives legitimacy to reporting that has already been proven inaccurate.
He described the situation as “defamation at the highest level,” and argued that the refusal to correct the story undermines trust in crypto journalism. His strong response has drawn attention to how major industry outlets handle corrections, particularly when independent reviews contradict initial reporting.
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