Charles Hoskinson, the founder of Cardano (ADA) and CEO of Input Output Global (IOG), has announced that an audit report concerning ADA holdings is set to be released by mid-August 2025.
In his X post on Sunday, Hoskinson confirmed he has reviewed the draft version of the report and has requested additional clarifications. The final audit is expected to be made public within a few weeks.
The audit is being conducted by two well-established firms: McDermott Will & Emery, a global law firm with extensive experience in blockchain and fintech, and BDO, a leading audit and accounting firm recognized for its strong track record in digital asset forensics.
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The review will focus on IOG’s ADA reserves, including historical fund movements and unredeemed tokens dating back to Cardano’s early phases.
Once published, the Cardano founder plans to present the entire report during a livestream. Additionally, the audit report will be published on a dedicated website together with the “other historical artifacts from the sale.”
Why Cardano is Under the Microscope
The audit report responds to accusations from the Cardano community, which claim that IOG may have improperly accessed approximately $619 million worth of ADA during the 2021 Allegra hard fork by using a so-called “genesis key.”
Critics claim that certain tokens were moved without proper disclosure or community consensus.
Charles Hoskinson rejected the accusations, explaining that most of the disputed ADA had already been claimed by original buyers over a seven-year period. The rest, he said, was given to Intersect, the organization overseeing Cardano’s governance.
Alongside the upcoming audit, Hoskinson said he’s working with a defamation law firm to consider legal action against those behind the allegations.
Hoskinson has described the accusations as part of a coordinated misinformation campaign aimed at damaging Cardano’s reputation.
Cardano (ADA) Price Reacts to the News
The audit announcement triggered a 5.77% rise in ADA’s price, pushing the world’s ninth-largest cryptocurrency to $0.89 on Monday morning, a level not seen since March.
The surge was fueled by a more than 85% increase in trading volume, which topped $2 billion.
Although ADA’s price is currently moving upward on the daily chart, showing strong breakout potential, crypto traders remain cautious due to the risk of a fake-out, which could trigger a correction back toward the $0.70 level.
However, the outlook is more optimistic on higher timeframes. On the weekly chart, Cardano’s (ADA) MACD has turned bullish, with the MACD line crossing above the signal line and a green candle forming.
On the monthly chart, ADA has also broken above its monthly moving average — a move seen only three times since 2020. Each of those breakouts was followed by a strong price rally, suggesting another upward trend could be on the horizon.
Why This Matters
Cardano (ADA) audit represents a rare instance of public transparency in the crypto world. With independent firms leading the investigation, the report could help settle long-standing community disputes, restore trust in Cardano’s (ADA) governance, and set a new precedent for accountability among blockchain founders.
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People Also Ask:
Cardano is a third-generation blockchain platform focused on scalability, sustainability, and smart contracts, using a proof-of-stake (PoS) consensus called Ouroboros.
Cardano (ADA) was founded by Charles Hoskinson, co-founder of Ethereum, through Input Output Hong Kong (IOHK), with development supported by the Cardano Foundation and Emurgo.
ADA is the Layer-1 chain’s native cryptocurrency, used for transactions, staking, and governance within the DeFi ecosystem.
It emphasizes energy-efficient PoS, layered architecture (settlement and computation), and formal verification for enhanced security, unlike Ethereum’s current hybrid model.
Cardano supports DeFi, NFTs, smart contracts, and applications in education, supply chain, and identity management, with a focus on scalability and interoperability.
