$600 Million ADA Scandal Not Stopping Cardano Fund Flows

Even with the controversy surrounding the $600 million ADA misappropriation scandal, Cardano investment products continue to hold strong in recent weeks. Based on CoinShares’ data from the week of May 30, Cardano saw $0.1 million in inflows. This may seem small, but given all the attention its founder, Charles Hoskinson, has been getting, you cannot ignore it.

Cardano products have seen positive inflows for the third week in a row, with $2 million added in May and $73 million so far this year. These figures do not show a huge increase, but they suggest that institutional confidence in the project has not been fully shaken — at least not yet.

This comes after some serious allegations that came up earlier in May. NFT artist and independent analyst Masato Alexander accused Charles Hoskinson of using a hidden function during the 2021 Allegra hardfork to quietly move 318 million ADA, worth around $619 million at the time, from inactive ICO wallets into reserves controlled by his company, IOG.

Hoskinson has strongly denied the accusations, saying that 99.8% of the ADA was eventually returned to the original buyers, with the rest going to Intersect — a Cardano ecosystem organization. He has threatened legal action against Alexander if the claims continue.

But critics say the community was kept in the dark about how it was done, and there is no public record of a full audit or clear reporting.

The Cardano Foundation has announced plans to publish an audit of its treasury.

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