Cardano Audit Report Confirms No Fraud in ADA Voucher Redemptions
Cardano's founder, Charles Hoskinson, was vindicated after Genesis released an audit report confirming no involvement in redemption fraud. EMURGO highlighted the transparency report, which addressed false accusations made by Masato Alexander.
Key Findings from the Audit
- 99.2% of ADA Genesis vouchers were redeemed, totaling 14,282 vouchers and 25.85 billion ADA.
- Only 6.1% of buyers were over 65 years old, countering claims that elderly individuals were targeted.
- No evidence of efforts to block redemptions or fraudulent activities was found.
- The audit concluded the allegations against Cardano had no basis.
The investigation involved accounting firm BDO and law firm McDermott Will & Emery, with the results shared publicly on September 3. EMURGO expressed satisfaction with the findings, aiming to quell further allegations.
Background of the Controversy
Accusations began in May when NFT artist Masato Alexander claimed Hoskinson manipulated the Cardano ledger using a "genesis key." This led to claims of misusing 318 million unredeemed ADA, valued at approximately $600 million. Initially, 99.8% of vouchers were redeemed, with a small portion redirected to the treasury.
The audit has now cleared Hoskinson and Input Output Global, affirming the integrity of the Cardano network.