FUD

• The crux of major Cardano controversy
• What the audit has found 

Cardano co-founder Charles Hoskinson says that he is “waiting for the apologies” following the publication of an audit of Cardano’s redemption process. 

The audit, which has involved accounting firm BDO and law firm McDermott Will & Emery, has found no evidence of fraud or misuse, thus debunking the latest “FUD” narrative related to the popular altcoin.

The crux of major Cardano controversy

In May, NFT artist Masato Alexander accused Hoskinson of manipulating the Cardano ledger with the help of a “genesis key” in order to seize a total of 318 million unredeemed ADA tokens. The tokens were valued at roughly $600 million. 

The ADA tokens were initially being sold as digital vouchers during the presale that took place in Japan. Early buyers were then able to redeem their tokens with the help of digital vouchers. 

Cardano insiders were accused of stealing or otherwise misusing ADA that should have been allocated to voucher holders. Moreover, blockchain upgrades allegedly made it difficult to redeem the vouchers. 

Hoskinson, however, vehemently denied misusing the tokens in question, claiming that 99.8% of the ADA vouchers were redeemed. He called the damning accusations damaging and deeply personal. The remaining 0.2% were then redirected to the treasury. 

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The Cardano founder then announced an independent audit that was meant to review the transactions. 

Now, Hoskison wants those spreading misinformation to apologize after being vindicated by the audit. 

What the audit has found 

Joel Telpner, chief legal officer at Input Output, says that the forensic audit has determined that the aforementioned accusations did not actually have any basis. 

It has been found that a total of 14,282 vouchers (99.2%) ended up being redeemed, representing 25.85 billion ADA tokens. Moreover, only 6.1% of buyers were older than 65, which disproves the long-standing accusations of selling ADA to elderly people. Furthermore, there was no deliberate blocking of redemptions. 

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