Claims Deepen in This Huge Altcoin: Did the Founder Sell a Large Amount of Coins? The Theory Has Emerged

Cardano (ADA) founder Charles Hoskinson has denied allegations that he embezzled more than $500 million worth of ADA from community funds, but the suspicions of investors and community members remain lingering.

Hoskinson, who announced that his company Input Output Global (IOG) would be opened to full auditing after the scandal and handed over control of his social media accounts to independent researchers, continues to be the target of criticism despite this.

While all eyes are still on the details of the so-called “redeem scandal” involving 318 million ADA, the audit process continues. In this atmosphere of uncertainty, a new theory has emerged on social media: the claim that Hoskinson indirectly made a fortune from unsold ADA.

According to critics, although Hoskinson said he did not sell ADA directly, he may have transferred or directed the assets to asset managers, who in turn sold shares to individual investors through ADA-backed exchange-traded products (ETPs).

Allegedly, Hoskinson may have received shares of these funds and then cashed out using capital channeled into ETPs by third-party investors. This method would allow him to claim he did not sell ADA directly, while potentially allowing him to profit indirectly.

Some ETP structures allow large investors to redeem their shares in exchange for cash, provided they pay certain transaction fees. This allegedly allowed Hoskinson to technically access cash in exchange for unsold ADAs.

Some ETPs with 100% allocation to Cardano include 21Shares Cardano ETP, CoinShares Physical Staked Cardano, WisdomTree Physical Cardano, Bitwise Physical Cardano ETP, Wave ADA Yield Fund, and Valour Cardano ETP. Apart from that, there are also many public altcoin and cryptocurrency index funds that include ADA. However, there is no public information on whether Hoskinson or his affiliates provide ADA to these funds.

Charles Hoskinson has often expressed his long-term commitment to ADA and its community. Hoskinson, who often refers to his background as one of the co-founders of Ethereum, has repeatedly said that he has no need to sell ADA.

Hoskinson, who categorically denied the allegations, stated that he fully supported the process carried out by the independent auditing firm BDO and the law firm McDermott Will & Emery.

IOG said in a statement that the allegations were “unfounded and malicious” and were the product of a “coordinated FUD campaign” designed around the ADA refund program for Japanese investors.

*This is not investment advice.

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