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Cardano founder Charles Hoskinson denied allegations of misusing the ecosystem's funds.
The Cardano ecosystem is embroiled in controversy as founder Charles Hoskinson denies allegations of misusing blockchain funds. The SLR Cardano Stake Pool accuses him of diverting resources to other projects such as Midnight – a layer 2 chain focused on privacy. The incident quickly sparked debate about governance and financial transparency in Cardano.
Many community members sided with Hoskinson, arguing that he had no access or motive to misuse the funds. Later, SLR softened his tone, praising the Cardano Foundation but mentioning the tension between the Foundation and Hoskinson's company – Input Output Global – due to leadership differences. Hoskinson responded, claiming that the internal conflict was being exaggerated. Despite the controversy, he continued to actively participate in policy discussions, demonstrating his role in the phase where Cardano is transitioning to the CIP-1694 governance model.