Charles Hoskinson, founder of Cardano, is accusing NFT artist Masato Alexander of orchestrating a smear campaign to boost an Ethereum project. Alexander had claimed Hoskinson secretly moved millions of ADA (Cardano’s cryptocurrency) into Cardano’s reserves.
A Public Accusation and a Heated Response
The feud started with Alexander’s allegation that Hoskinson quietly transferred 318 million ADA (around $619 million at the time) during a 2021 software upgrade. Hoskinson vehemently denies this, calling it a publicity stunt to raise funds for Alexander’s Ethereum-based project, Akua. He shared private messages on X (formerly Twitter) seemingly supporting his claim. These messages included a conversation where Alexander discussed securing funding for Akua.
This public release of private messages led to further back-and-forth, with other individuals involved also weighing in. Phil Harman, a Cardano developer, expressed displeasure at having his private advice to Alexander made public.
Akua: The Ethereum Connection
Akua, Alexander’s project, is described as a prediction market focused on natural disaster risk management. Crucially, it’s designed to be compatible with the Ethereum Virtual Machine (EVM). This detail fueled the suspicion that the entire accusation was a marketing ploy aimed at the Ethereum community. Both Hoskinson and other Cardano developers believe Alexander’s actions were financially motivated and intended to generate hype for Akua.
Hoskinson’s Defense and the Voucher Sweep
Hoskinson explained the 2021 ADA voucher situation, arguing that many Japanese users, particularly older ones, faced difficulties redeeming their vouchers. He claims there was a moral obligation to simplify the process, resulting in the transfer of the remaining ADA. He insists that the vast majority of vouchers were redeemed, and the leftover ADA was donated to Intersect, Cardano’s governance body. He dismisses the accusations as “absurd” and has threatened legal action. An independent audit is underway to verify the transactions.
Conflicting Narratives and the Audit
Alexander, however, views the situation differently, claiming that the process deprived early investors of their coins and that only a small portion of the funds ended up at Intersect. An independent audit by McDermott Will & Emery (MW&E) and BDO is expected to provide clarity, though a release date hasn’t been set. At the time of writing, ADA was trading at $0.7889.
