NFT artist Masato Alexander alleged that Hoskinson used a “genesis key” to redirect 350 million unclaimed ADA and later 318 million ADA through MIR transactions during the 2021 Allegra hard fork, effectively misappropriating $619 million. The claims reignited long-standing community distrust over Cardano’s opaque treasury mechanics.
Hoskinson denies wrongdoing, noting that redemption remained open for seven years and that unclaimed ADA was ultimately donated to Intersect, Cardano’s governance body. He says Input Output Global—not the Cardano Foundation—will publish an independent audit to clarify fund flows and quell speculation.
Beyond reputational damage, the episode underscores the tension between founder influence and decentralized governance. A credible third-party audit could restore confidence, but if discrepancies emerge, regulators may scrutinize Cardano’s tokenomics and IOG’s role—especially as the network courts institutional partnerships.
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