Hoskinson Reveals Why He Walked Away: Cardano Founder Rejected El Salvador Deal Over MS-13 Concerns

Cardano founder Charles Hoskinson drops bombshell revelation—turned down El Salvador's crypto overture citing gang-related risks. Here's why it matters.

The Backstory: While Bitcoin became legal tender in El Salvador, Hoskinson saw red flags Wall Street overlooked.

Risk vs. Reward: MS-13's notorious presence allegedly made due diligence impossible—a stark contrast to crypto's usual 'ask forgiveness later' approach.

Crypto's Growing Pains: When even blockchain pioneers balk at regulatory gray areas, it exposes the industry's precarious dance with mainstream adoption.

Funny how 'financial revolution' stops at gang-controlled territories—almost makes you miss the good old days of overpriced banking fees.

TLDR

• Charles Hoskinson claimed he rejected a proposal to implement Cardano in El Salvador in 2021.
• He cited concerns that a national airdrop could send cryptocurrency to members of the MS-13 gang.
• MS-13 is classified as a Transnational Criminal Organization by the U.S. government.
• Hoskinson said El Salvador lacked formal compliance guidelines for adopting cryptocurrency.
• He described the Salvadoran government’s planning process as disorganized and informal.

Cardano founder Charles Hoskinson has claimed he walked away from a proposed partnership with El Salvador in 2021. The alleged decision followed concerns about potential cryptocurrency distribution to individuals tied to criminal networks, including the MS-13 gang. Despite discussions with President Nayib Bukele’s government, Hoskinson stated he ended talks within a week due to compliance risks.

Concerns Over Airdrop and U.S. Sanctions

Hoskinson claimed the Salvadoran government proposed a nationwide airdrop of cryptocurrency during early-stage talks on blockchain integration. He expressed concern that such a distribution could reach sanctioned individuals linked to the MS-13 gang. This gang is classified as a Transnational Criminal Organization by the U.S. Treasury Department.

According to Hoskinson, providing digital assets to all citizens risked violating U.S. sanctions, drawing potential legal and diplomatic issues. He noted that airdropping tokens without screening could inadvertently transfer value to blacklisted groups. Therefore, the project faced significant obstacles in aligning with U.S. financial compliance.

Discussions with U.S. officials reportedly failed to yield a viable path forward under the Biden administration. Hoskinson said the administration was unwilling to support a policy seen as benefiting El Salvador’s leadership. Consequently, Cardano representatives halted further negotiations and exited the initiative.

Government’s Strategy and Hoskinson’s Observations

Hoskinson described disorganization within the Salvadoran administration during the blockchain planning process. Officials reportedly lacked clear guidelines or documented business strategies for implementing cryptocurrency at the national level. Instead, they allegedly referenced public social media content as informal policy directions.

He recounted unusual exchanges, including one with the Minister of Energy about geothermal mining driven by volcanic activity. The comment underscored what he viewed as a lack of structured planning for Bitcoin infrastructure, raising doubts about the country’s readiness to handle a national-level digital asset program.

Furthermore, Hoskinson emphasized the importance of regulatory clarity when introducing crypto to a population. He stated that the absence of compliance frameworks increased operational and legal risks. These conditions, he claimed, made the proposal untenable for cardano to support.

Cardano and ADA Token Performance

Following the deal’s rejection, Cardano continued to focus on its own ecosystem development. ADA, Cardano’s native token, is currently priced at $0.5768 after gaining 2.0% over the past seven days. However, it remains down 12.5% over the last month.

The token’s performance still lags significantly behind its all-time high of $3.09 recorded in September 2021. Market analysts note ADA’s recent movements are aligned with broader crypto trends. Nonetheless, Cardano has maintained moderate resilience amid fluctuating conditions.

Despite Hoskinson’s claims, neither the U.S. government nor El Salvador has publicly confirmed or denied the account. Bukele’s administration continues promoting bitcoin adoption through state-backed platforms. Meanwhile, Cardano proceeds independently with its roadmap and development goals.