The founding father of Cardano, Charles Hoskinson, denied allegations that he had used Genesis keys to confiscate 318 million ada tokens throughout the Allegra Hard Fork in 2021.
The accusations appeared on X last week. The NFT artist Masato Alexander claimed that Cardano had modified the blockchain throughout the Allegra Hard Fork. He said the network extinguished original ADA vouchers and redirected them to Cardano Reserve.
Alexander wrote,
“This HF effectively deleted the unique ICO utexos, which accommodates the 318 m ₳ 318m and swept the funds into the Cardano reserves.”
Allegra Hard Fork Ada claim. Source: Masato Alexander on X
He claimed that the team pretended to reign the means, but most of them held back and used some to place and generate an estimated 25 million ADA in rewards.
Hoskinson explains the redemption and use of Custodial account
Charles Hoskinson refused all claims that he or he or he would have 318 million ADA throughout the Allegra hard fork or confiscated. He explained that the Allegra upgrade made the ADA vouchers inappropriate. Then the team moved the tokens to a custodial account that’s managed by the token generation (TGE).
In an in depth post on X, Hoskinson explained,
“The ADA vouchers couldn’t be donated after the hard fork. They were rooted in a deposit account controlled by the TGE, which then continued to redeem the Genesis funds to the unique buyers for 3 years.”
Hoskinson defends the TGE process and the ADA solution. Source: Charles Hoskinson on X
The ICO distribution process will remain energetic from May 2025, even though it is now positioned shortly before completion. The last buyer is currently completing his salvation. As soon as he has accomplished the method, the TGE will issue an externally tested report. In this report, all the Cardano ICO solving history is handled. The tge will then share it with the founding units and the intersection, which acts as a Cardano Governance body.
Hoskinson confirmed that the unique buyers had already redeemed 99.8% of all ADA sold throughout the ICO. He explained that the TGE returned the remaining 0.2% and donated it to the intersection. The team followed the identical mechanism that was used to finance the Cardano Foundation. He explained that all the process was followed by the official salary protocol.
According to Hoskinson, the repayment delays were attributable to several problems. First, the corporate, which had served as the only seller of ADA vouchers, went the business. Second, under its previous lead, the Cardano Foundation refused to take the redemption tasks after the beginning of the minutes in 2017, although it had checked the unique sale. These developments forced IOG to increase the redemption window and maintain the operation for a couple of more years.
He added that the TGE had to attend legally for seven years before he didn’t remember ADA that didn’t remember. This period ends now and the ultimate examination report will soon be published. Until then, Hoskinson confirmed that there could be no further IOG statements on this matter.
“Many people at IOG have been grateful with this program for years. I’ll be certain that their labor is broadcast, and provides the critics the chance to apologize and to withdraw their statements after the report has been published.”
When false claims are continued, Hoskinson said that entering output -output will take legal motion globally.
“If you proceed to say that IOG has stolen donations, we’ll take legal steps,” he warned.
The upcoming report is anticipated to make clear the complete trace of the Cardano ICO, including all ADA vouchers -settings, Cardano reserves and the ultimate transmission to intersection.
Cardano founder plans legal steps against public claims
Masato Alexander made further concerns. He claimed that the tokens intended for early investors were largely defined and generated additional ADA rewards. He also criticized the Cardano team for a scarcity of documentation and transparency.
“Only a tiny fraction went through to chop himself”, “
Alexander wrote.
“Where is the overwhelming majority of those 318 million ₳ 318 million actually after being moved out of reserves?”
He said that no complete exam or a successful path was made available.
Masato ask ada find transparency and governance. Source: Masato Alexander on X
Hoskinson replied by incorrectly describing the statements. He said the team is considering legal steps.
“Since we are actually considering litigation against those that slandered us, we won’t make any further statements until the ultimate report is published.”
He explained to X.
Hoskinson added that the team would send legal messages to anyone who repeats the claims. In the meantime, Input Output Global has not published the corporate that developed Cardano.
So far, no party has published transaction records or internal memos. However, the community continues to debate the ADA problem of 318 million ADA. The discussions are actually specializing in the Allegra Hard Fork, the ADA voucher handling and the claims that take care of intersection and the Cardano reserves.
Cardano price forms Bärische Flags based on Hoskinson Ada controversy
On May 18, 2025, Cardano (ADA) acts with $ 0.7560 and shows signs of weakness based on the episode of the 318 million ada attacks. The controversy about Charles Hoskinson and claims related to Allegra Hard Fork seems to have influenced the investigation and trigger a pointy sale.
Cardano has now formed a bearish flag pattern, a technical structure that always signals the continuation of a previous downward trend after a short lived upward trend. The pattern consists of a steep drop (the flag mast), followed by an increasing parallel channel (the flag).
Cardano Forms Bärische Flags after the ADA controversy. Source: Tradingview
If confirmed confirmed, this bear -flag suggests that Cardano could fall by almost 31% of its current level of $ 0.7560, which goals at around $ 0.5112. This level marks the projected breakdown based on the quantity of the previous drop, which was added under the flag support.
The day by day table shows Ada Breaking under the upper channel of the flag after touching a recently touched up of $ 0.81. The price is currently testing the lower trend line of the flag. An important breakdown could validate the bear structure.
The relative strength index (RSI), an impulse indicator, currently reads 59.11 from its former peak. It indicates the slowdown of the acquisition pressure when ADA approaches key support. The 50-day exponential sliding average (EMA) is $ 0.7217, and Ada hardly stops. Losing this level can further confirm bear control.
The trading volume is 7.35 million, that are lower than the extent throughout the previous outbreak. This weak participation contributes to the bearish case. If the flag breaks down, the following strong support is around 0.51 US dollars, which corresponds to the goal calculated from the pattern.
Cardano must stay above the lower border of the channel and the 50-day EMA to avoid deeper losses. If this isn’t the case, the asset could be exposed to an accelerated decline within the direction of the zone of USD 0.51, which corresponds to a possible decrease of 31% in comparison with the present price.
The broader market response on Hoskinson's legal threats and the continuing delay of the TGE repayment report continues to burden AdA's price.
