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Charles Hoskinson, the founder of Cardano, recently addressed claims regarding IOHK allegedly taking unredeemed ADA tokens. During a YouTube AMA in Buenos Aires, Hoskinson explained the process for redeeming tokens from the original sales and firmly denied any accusations of theft. He clarified that the issue arises from ADA vouchers that a third-party supplier has not yet redeemed. Hoskinson assured that the situation is being managed carefully, ensuring that everyone remains informed.
Hoskinson detailed that the original ADA sale occurred between 2015 and 2017 in Japan through a voucher system managed by Attain, a third-party distributor. IOHK focused on making the compliance software, and Attain was responsible for handling sales according to Japanese law during that period. Once Attain was closed due to new regulations, several vouchers were left behind in Cardano blockchain addresses that could not be used.
According to him, IOHK did not take the tokens. Still, a redemption period was established for anybody who bought Cardano after the ICO to gain ownership of ADA tokens. Emurgo and the Cardano Foundation approved the development of the mechanism. He argued that if the Cardano Foundation had acknowledged it understood the redemption process, it could have reduced the spread of false information.
The co-founder mentioned that the information that over 300 million ADA was stolen is incorrect and hurts the Cardano network. He affirmed that the community had accepted 99.8% of the redemptions, and the rest would be resolved in Japan through legal action. IOHK will publish transparent details in the form of review reports and company communications.
The allegations resurfaced after NFT artist Masato Alexander accused Hoskinson of using a “genesis key” to rewrite the Cardano ledger and control $619 million worth of ADA during the 2021 Allegra hard fork. Hoskinson responded by stating that the so-called unclaimed ADA never belonged to IOHK and that most tokens were redeemed over a seven-year period following the sale.
Hoskinson expressed disappointment at the community’s mistrust and reiterated IOHK’s commitment to transparency. He confirmed that an audit report is underway and urged the public to await its release before concluding. He also announced plans to hand over his social media channels to a media team to focus more on verified information.
The audit is ongoing. It primarily focuses on explaining the redemption process and deciding how the remaining ADA tokens will be handled legally in Japan. Hoskinson’s comments aim to reassure the community about Cardano and confirm that IOHK stands by its values.
