$600M ADA Scandal Rocks Cardano—’Decentralized’ Project Faces Embezzlement Firestorm

Cardano’s ’trustless’ ethos takes a hit as investigators uncover alleged $600 million ADA misallocation—just as the token finally gained institutional interest. The blockchain’s Ouroboros consensus mechanism might verify transactions, but who verifies the humans?

Insiders whisper about inflated development budgets and suspicious wallet movements. Charles Hoskinson’s team scrambles to contain the fallout, but the damage is done: another crypto project tripped up by old-fashioned greed.

Meanwhile, traditional bankers smirk—their embezzlement schemes at least come with velvet ropes and expense accounts.

$0.735516, which has long been one of the top altcoins, is now facing allegations involving the embezzlement of $600 million in ADA Coin. This article delves into the claims and the repercussions for Cardano.

ContentsCardano (ADA) NewsADA Coin Price Prediction

Cardano (ADA) News

Charles Hoskinson, the founder of Cardano, has once again come under the spotlight due to allegations regarding the $600 million ADA Coin. These claims, raised by community members including NFT artist Masato Alexander, suggest that Hoskinson took control of the Cardano ledger during the 2021 Allegra hard fork. Allegedly, he used the genesis key to control a wallet containing $619 million ADA, thereby manipulating the network.

On October 24, 2021, a transaction labeled “Move Instantaneous Rewards” indicated that ADA Coin funds amounting to $318 million were allocated to staking or treasury funds. Hoskinson countered these claims by asserting that the majority of the 350 million ADA was redeemed by real buyers over seven years, and that Intersect was donated the remainder that was unclaimed.

In response, the cardano Foundation refuted allegations of misappropriation regarding tokens leftover from the genesis period, which had neither been claimed by their owners nor reached them. They assured the public that a comprehensive audit report would be released.

ADA Coin Price Prediction

Following these developments, Hoskinson announced a reduction in his social media presence once the audit report is shared, hinting at being affected by the claims. He plans to hand over his X account to the social media team and modify the format of AMA sessions. This incident could potentially lead to a long-awaited leadership change for ADA Coin, as Hoskinson has long been criticized by the community for his leadership style.

Following the general sales, ADA Coin returned to the $0.73 support level as anticipated. While BTC’s price shows signs of recovery, China’s statement about the US harming the Geneva accord serves as a warning for a more severe selling wave. If everything goes well, breaking the $105,800 resistance again could see ADA Coin return to $0.86.

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