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Hoskinson Demands ‘No Confidence’ Vote Over $600M ADA Scandal

Cardano’s Founder Charles Hoskinson blames the Cardano Foundation for spreading false theft claims, calls for a no-confidence vote, and legal action.

Written By:
Shruti Lakhlani

Reviewed By:
Jahnu Jagtap

Last updated: September 4, 2025 8:20 PM
Published September 4, 2025 8:12 PM
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Last updated: September 4, 2025 8:20 PM
Published September 4, 2025 8:12 PM
Hoskinson Demands ‘No Confidence’ Vote Over $600M ADA Scandal

Charles Hoskinson, Cardano’s Founder, has called for a “vote of no confidence” with the Cardano Foundation (CF). This comes amid an ongoing dispute over the purported theft of more than 300 million ADA tokens, which were worth more than $600 million at the time of the charges.

In a recent post on X, Hoskinson accused the Cardano Foundation (CF) of “ruining the integrity of Cardano” by allegedly fueling unfounded allegations of foundation-owned ADA misappropriation.

“At some point, we, as the ecosystem, have to hold them accountable,” Hoskinson said. “An info action with a vote of no confidence, maybe a class action suit with the Swiss government to get them to vacate the board.”

The accusations, originally circulated by a crypto influencer, claimed that Hoskinson used a “genesis key” to improperly seize unclaimed ADA funds from a 2015 pre-sale. In response, Hoskinson commissioned a third-party forensic audit to address the community’s concerns while denying the scam allegation. 

The audit, conducted by a law firm and an accounting firm, concluded that the allegations had “no basis.” The report clarified that the vast majority of the ADA vouchers were redeemed, and the remaining unredeemed funds were transferred to a secure custodial account and later to Intersect, a decentralized governance body.

“The investigation determined that each of the allegations related to the topics of investigation does not have any basis,” the report stated.

Cardano Foundation has welcomed the publication of the investigative report on the ada Voucher Program released yesterday by InputOutputHK.

“We are happy that it confirms the redemption process was conducted correctly and diligently.” posted CF on X.

Despite the audit’s findings, the damage to community sentiment appears evident. Additionally, according to Hoskinson, the Foundation’s remaining funds should be transferred to the Cardano treasury or to another organization that is more in sync with the project’s goals.

Hoskinson’s remarks have sparked debate about governance in decentralized projects, with many questioning the balance of power between leadership and oversight in blockchain ecosystems.

Also Read: Grayscale Files for Cardano, Polkadot ETFs with SEC

Disclaimer: The information researched and reported by The Crypto Times is for informational purposes only and is not a substitute for professional financial advice. Investing in crypto assets involves significant risk due to market volatility. Always Do Your Own Research (DYOR) and consult with a qualified Financial Advisor before making any investment decisions.

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TAGGED:Cardano (ADA)
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Shruti Lakhlani- Crypto Journalist at The Crypto Times
By Shruti Lakhlani
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Shruti Lakhlani is a Crypto Journalist with over 5 years of experience in media and digital content. She specializes in covering the latest developments in the cryptocurrency industry, including major updates in the U.S. markets and global regulatory policies.
Jahnu Jagtap - Crypto Research Analyst at The Crypto Times
By Jahnu Jagtap
Follow:

Jahnu Jagtap is a Research Analyst with over 5 years of experience in crypto, finance, fintech, blockchain, Web3, and AI. He holds a BSc in Mathematics and is certified in Blockchain and Its Applications (SWAYAM MHRD), Cryptocurrency (Upskillist), and NISM Certifications. Jahnu specializes in technical, on-chain, and fundamental analysis, while also closely tracking global macro trends, regulations, lawsuits, and U.S. equities. With a strong analytical background and editorial insight, he drives content that delivers clarity and depth in the fast-evolving world of digital finance.

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