Cardano founder Charles Hoskinson expanded his response to allegations that Input Output Global (IOG) misappropriated over 318 million ADA from unredeemed pre-sale wallets, calling the situation deeply personal and damaging.

In a May 18 post on X, Hoskinson reflected on the reputational toll of the allegations, noting that the incident has reshaped his view of his relationship with the Cardano community.

He added:

“For a decade, I’ve been on the front lines. To not be given the benefit of the doubt here without strong evidence to the contrary means I don’t have the connection I thought with some people.” 

Hoskinson added that following the release of an external audit, he intends to hand control of his social media account to a media team and scale back his direct engagement.

Legal pushback and audit plans

Hoskinson first responded to the allegations on May 7, saying that IOG may pursue legal action against those accusing him of redirecting unclaimed ADA from Cardano’s 2017 Token Generation Event. 

According to a social media thread by X user Masato Alexander, a December 2020 protocol update introduced a function that reassigned ADA from unredeemed UTxOs to Cardano’s reserves. 

Alexander alleged that the subsequent Move Instantaneous Rewards (MIR) transaction diverted these funds without transparency or notification to the original voucher holders.

Hoskinson countered that investors redeemed 99.8% of ADA vouchers. The remaining 0.2%, recovered under protocol rules after a seven-year window, was donated to Intersect, the Cardano industry coordination body. 

He added that an externally audited report would soon document the redemption history and crowdsale process. Hoskinson also said he would “send letters to the relevant parties demanding retractions and apologies.”

Alexander disputed the claim, citing a public statement by Intersect’s interim executive director that it received only $7 million in 2024, far less than the estimated $600 million value of the disputed ADA. He also criticized the lack of a detailed audit publicly tracing the fund flows.

Foundation and Emurgo address governance process

On May 19, the Cardano Foundation issued a statement distancing itself from the operational aspects of ADA voucher redemption after 2021. The statement added that while it received general updates, it did not provide detailed accounting. 

The foundation stated: 

“The effort to locate and support remaining voucher holders has been led by the IO team over the past four years.”

The foundation welcomed IOG’s pledge to release a third-party audit and recommended that it include all MIR transactions, balances, and any returns generated during fund administration.

Cardano’s commercial arm, Emurgo, also defended IOG’s efforts in a May 19 post. It said the seven-year redemption process involved multiple campaigns, third-party investigations in Japan, and Know Your Customer (KYC) verification.

Emurgo acknowledged:

“While the vast majority of the pre-sale ADA vouchers have been successfully redeemed, there was a small percentage that had gone unredeemed.”

The company added that the Shelley hard fork would have rendered unredeemed ADA unspendable, necessitating their movement to enable further redemptions.

The firm also expressed concern over “excessive, unwarranted FUD,” saying accusations based on limited facts caused unnecessary harm to the ecosystem. It echoed IOG’s call for an audit and urged the community to remain patient.

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Roughly 55 million US adults currently own crypto, and a substantial majority of them say digital assets have improved their lives, according to the 2025 State of Crypto Holders Report commissioned by the National Cryptocurrency Association. 

The survey, conducted by The Harris Poll, found that about 21% of the US population owns crypto, and 76% of the holders believe their experience with digital assets has had a positive personal impact.

The poll surveyed 53,805 US adults to identify a representative sample of 10,000 current crypto holders. It is the largest survey to date and reflects a broad demographic range. 

The survey revealed that 67% of holders were under 45 years old, while 15% were over the age of 55, considerably different from a few years ago, when those over the age of 45 were represented in a single-digit percentage.

Meanwhile, gender disparity is also falling, with women accounting for 31% of crypto holders, compared to men accounting for 67% of holders. 

Ownership also grew across all income levels, with households earning less than $75,000 annually now accounting for 26% of crypto-owning households. The report highlighted that the low bar of entry had helped adoption in the lower-income groups.

Beyond investment

The report highlighted that crypto use is not limited to investment. About 39% of holders use it to make purchases, and 96% of those do so at least once a year. Additionally, 31% use crypto to send money to family or friends, and 31% accept it as payment in business transactions. 

Half of all respondents said they were first drawn to crypto by curiosity about the technology, while 60% cited investing in their financial future as the primary motivation for entry.

The report also showed a diversified pattern of holdings. While 11% of holders own over $100,000 in crypto, 55% have portfolios valued under $10,000, and 15% hold less than $500. 

The most commonly known tokens include Bitcoin (99%), Ethereum (91%), and Dogecoin (91%). However, actual usage is concentrated in a smaller group, with Bitcoin held or used by 85% of the respondents, while Ethereum was held or used by 58%.

Regarding societal benefits, 45% of respondents believe crypto promotes financial inclusion and reduces poverty, and the same proportion cited improved digital transaction infrastructure. 

Others pointed to its role in advancing technology (38%) and promoting sustainable financial practices (38%).

Myriad profiles

According to the survey, respondents expressed strong interest in continued education, with 81% saying they want to learn more about digital assets. 

Popular areas of interest include investment strategies (47%), tax implications (39%), blockchain technology (38%), and safety practices (38%). The top sources of information were YouTube and traditional media outlets.

While concerns remain, particularly around scams, volatility, and tax complexities, only 3% of holders reported negative experiences. Out of the 3% negative experiences, about 30% involved fraud or security breaches. 

Meanwhile, 49% of respondents said crypto increased their financial independence, and 45% reported personal growth due to their engagement with the asset class.

Additionally, the majority of respondents view regulation favorably, with 64% supporting government oversight of the sector. 

At the same time, 67% warned that poor regulatory design could stifle innovation, while 73% said they would like to see the US take a global leadership role in crypto development.

The report concluded that US crypto holders view digital assets as personally beneficial and structurally transformative. They express optimism about crypto’s role in financial systems and remain actively engaged in expanding their understanding and participation.

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