Cardano Founder Responds to Allegations of Misusing Project Funds

Charles Hoskinson, the founder of Cardano, has responded to new claims that he misused funds from the blockchain’s treasury, reigniting old debates about leadership and governance within the Cardano community.

The controversy began after the SLR Cardano Stake Pool accused Hoskinson of diverting Cardano treasury funds to support his other ventures, including the Midnight project. The post triggered a wave of criticism over transparency and accountability in how Cardano’s funds are managed.

In an X post, SLR wrote, “Yes, we are trying to kick Charles and his company off the chain as he builds Midnight and siphons money from Cardano treasury to his other projects.”

A user known as Marine Chad came to Hoskinson’s defense, calling the claims “completely dead” and saying Hoskinson had no reason to misuse funds. SLR later softened its stance, noting that it had “a pleasant time working with the Cardano Foundation,” but maintained that “the IOG enmity with CF is purely a Charles issue.”

Hoskinson reposted the exchange, highlighting what he saw as an inconsistency in the criticism. “Love seeing the ‘Charles is the enemy of Cardano and he needs to leave’ followed by ‘We have a great time working with the CF,’” he wrote. “See how the culture propagates.”

Hoskinson Defends Cardano

Charles Hoskinson continues to promote Cardano on broader platforms. Recently, he took part in an important regulatory roundtable on the Clarity Act for digital assets — a proposal aimed at setting unified rules for exchanges, issuers, and investors. His latest remarks reflect growing frustration over what he sees as selective blame and a loss of trust among Cardano’s main organizations.

This new clash follows an earlier controversy involving the Cardano genesis key. At that time, an independent audit cleared Hoskinson and IOHK of any wrongdoing, finding no signs of key misuse or financial misconduct.

For now, the new allegations about treasury fund misuse remain unverified and are mainly circulating on social media. As Cardano advances its community-led governance model under proposal CIP-1694, openness and clear communication will remain crucial to sustaining confidence in the ecosystem.