Cardano’s Charles Hoskinson Gears Up for Explosive August Audit Following $600M ADA Scandal

Cardano founder Charles Hoskinson is bracing for a high-stakes August audit—just as the network reels from a $600 million ADA controversy. The timing couldn’t be worse—or more theatrical.

Hoskinson’s audit prep lands like a grenade in a minefield. With regulators circling and the ADA community on edge, the move reads like damage control with a side of defiance. ‘Explosive’ might be underselling it.

The $600 million question: Was this scandal a hiccup—or a harbinger? Cardano’s ‘peer-reviewed’ ethos is now under the microscope. Funny how those nine zeros sharpen everyone’s focus.

One cynical take? In crypto, audits are like umbrella vendors in a hurricane—always in demand, never quite enough. Hoskinson’s August reveal will either douse the flames or fan them. Place your bets.

$600 Million ADA Allegations Prompt Mid-August Cardano Audit Release

In May, fake headlines circulated across social media, falsely accusing Charles Hoskinson of orchestrating a $600 million ADA theft.

“I’m absolutely disgusted…The headlines I’ve seen are beyond damaging, they will require months if not years of work and millions of dollars to undo post-audit,” Hoskinson wrote in a May 20 post.

The claim centered on unproven allegations that IOG used a “genesis key” to manipulate the Cardano ledger during the 2021 Allegra hard fork. Based on the claims, the team allocated roughly 350 million ADA to itself.

Beyond denying the rumors, Hoskinson committed to an audit and potential legal action against propagators. The cardano executive reiterated the commitment on Sunday, July 20, pledging to publish a full audit of IOG’s ADA holdings.

Hoskinson confirmed that the audit report is progressing well and on track for mid-August.

“I will read the entire report via livestream once it becomes available,” he said.

He also articulated that a dedicated website will permanently host the document and other historical artifacts from the ADA sale. Joel Telpner, Chief Legal and Policy Officer at IOG, echoed Hoskinson’s timeline.

Hello Cardano Community. We are making good progress on the investigative and audit report that we promised to deliver. The law firm and audit firm are close to completing their work and we are hoping the report will be ready to release by the middle of August. I’ll continue to…

Some users express concerns about the scope of the audit and who defines the parameters. Others also call for more detail and context to strengthen the report for public release.

Meanwhile, Hoskinson said the audit will directly address claims that IOG secretly allocated unclaimed ADA to itself.

According to Hoskinson, most of the 350 million ADA referenced had already been claimed by rightful owners.

He explained that the remainder was transferred to Intersect, a governance body in the Cardano ecosystem, following a seven-year grace period. He also hinted at legal action against individuals spreading defamatory claims.

“Meeting with the defamation law firm next week to discuss options and strategy,” he stated.

The upcoming audit may prove pivotal for Cardano’s credibility. With tensions high and the project’s founder under scrutiny, August could mark a defining moment, either reaffirming Hoskinson’s leadership or deepening community fractures.