In the past 48 hours, the Cardano ecosystem has found itself at the center of a storm, as fresh allegations surfaced suggesting embezzlement tied to a $600 million ADA voucher redemption. The claims which spread rapidly across crypto media outlets have drawn sharp responses from Cardano founder Charles Hoskinson and COTI CEO Shahaf Bar-Geffen.
According to a Cointribune report, Cardano’s treasury activities came under scrutiny after accusations circulated that the ADA voucher redemption process may have involved irregularities. This narrative was further amplified by Cointelegraph, which described the situation as a potential $600M controversy—triggering backlash and confusion across X (formerly Twitter).
Cardano has stepped into defense mode with founder Charles Hoskinson categorically denying the claims and calling them “disgusting.”
Hoskinson’s response was swift and fiery:
Hoskinson didn’t mince words:
Hoskinson further explained that the person behind the fraud claims had “no connection or inside knowledge” of the process and that a third-party audit by BDO is currently underway to clear the air.
In addition to condemning the media’s handling, Hoskinson posted a poll asking ADA holders, developers, and DApp builders whether they would join a class action lawsuit against the parties that “defamed Cardano after the audit report is released.” At the time of writing, over 74% of voters said Yes.
Backing him publicly was Shahaf Bar-Geffen, CEO of COTI Group (Cardano’s partner in the Djed stablecoin project), who voiced strong support:
The situation has divided opinion in the broader Web3 space—while some advocate legal action to counter misinformation, others argue decentralized ecosystems must tolerate public scrutiny and even bad-faith speculation.
Whatever the outcome, this incident highlights an ongoing tension in Web3: the balance between transparency, media responsibility, and protecting reputations in open ecosystems.
Still, one thing is clear: Cardano’s leadership isn’t backing down. With the BDO audit still underway, all eyes are now on the facts and how both crypto media and communities choose to respond once they’re officially released.
Stay tuned. CotiNews will be tracking the outcome of the audit and its ripple effects—closely
