Charles Hoskinson, the founder of Cardano, has resisted mounting allegations that IOHK engaged in theft involving unredeemed ADA tokens. In a YouTube AMA from Argentina this weekend, Hoskinson addressed what he described as a “coordinated campaign of defamation,” while offering new details and context about the complex redemption process that followed Cardano’s early token distribution. Speaking from Buenos Aires, where IOHK is launching its new regional office for the Lace Wallet project, Hoskinson explained that the original ADA token sale took place between 2015 and 2017 in Japan via a voucher system handled by a third-party distributor, Attain. He emphasized that IOHK’s role was limited to building compliance software and that Attain managed direct sales under Japanese law at the time. The pundit further revealed that the current controversy stems from unredeemed ADA vouchers associated with that sale. These vouchers were never converted into spendable tokens and remained in special addresses on the Cardano blockchain. After Japanese regulators changed the law, Attain was forced to shut down, severing the redemption channel for some purchasers. “This is not an issue of theft,” said Hoskinson. “ These were pending transactions never completed by the buyers. We initiated a post-sweep redemption mechanism to allow late participants a chance to redeem under a new compliance process .” He added that the system was approved in consultation with Emurgo and the Cardano Foundation (CF). Hoskinson also criticized the Cardano Foundation for refusing to publicly acknowledge its awareness of the redemption process. “We asked them for a simple tweet to confirm they were aware. That could’ve helped deescalate the misinformation. Instead, they claim it’s a ‘self-inflicted wound’ and asked me to personally call CF president Fred,” he stated. He then warned that the spread of false claims, with some suggesting over 300 million ADA was stolen, is causing reputational harm to Cardano. “People don’t read into the details. They see headlines like ‘ADA theft’ and assume systemic failure. That damages the entire ecosystem,” he said. To substantiate its position, he confirmed that IOHK will publish audit reports and internal documentation, including Slack messages, emails, and legal memos. “We’ve acted in good faith. 99.8% of ADA was redeemed by buyers. The rest are voided, pending legal resolution in Japan ,” he added. Hoskinson closed by urging the community to wait for the full audit before drawing conclusions. Notably, this is not the first time Cardano has faced public criticism or internal ecosystem rifts. In the past, disagreements between IOHK and the Cardano Foundation have surfaced, notably over governance and project direction. Hoskinson has repeatedly advocated for greater unity and accountability among Cardano’s core institutions. Hoskinson reaffirmed IOHK’s commitment to resolving the matter and defending the project’s integrity despite the controversy. The said audit report is expected to shed more light on the redemption process and may determine how the lingering 0.2% of ADA transactions will be handled under Japanese law.
