Cardano founder Charles Hoskinson has clarified the fate of 1,096 BTC from the project’s early crowdfunding. During a recent AMA, he stated the funds were used to pay for an audit in 2016/2017, a claim now being scrutinized by critics calling for full transparency and the release of supporting documentation.
Charles Hoskinson stated that a disputed 1,096 Bitcoin stash from Cardano’s early crowdfunding was used for an audit. He made this revelation during a recent livestream AMA addressing governance and community issues.
The funds were allocated to an Isle of Man Foundation entity that performed early legal work. That organization has since been dissolved.
Investor Thomas Braziel recently questioned the transaction’s value and demanded a full account. Hoskinson addressed the query during the weekend AMA.
He cited a March 2016 email from then-Chairman Michael Parsons requesting compensation for auditing the crowdsale. Hoskinson clarified the value, stating, “The closing price of Bitcoin March, 13 2016, was $414. That’s about $400,000 for three auditors.”
The payment reportedly went to three independent reviewers: Parsons, John McGuire, and Bruce Milligan. Hoskinson argued calls for transparency are often meant to stir controversy rather than resolve matters.
Braziel was not satisfied with the explanation, saying the AMA created more questions. He asked on social media how IOHK came to control roughly 95% of the raised BTC while the Foundation received only a fraction.
He stated, “If that’s the explanation, then the next step is simple: publish the invoices, agreements, and approvals, and payment records.” Braziel also believes the timing and value figures are inaccurate, suggesting the audit likely occurred later when Bitcoin was worth more.
This development occurs amid broader debates about Cardano’s treasury and governance. The co-founder also revealed plans to move the ADA community to Discord.
Simultaneously, the Cardano Foundation’s budget is under scrutiny, with only a third of proposals approved under a new process. Organizers canceled the planned 2026 Singapore Summit after a related $7.8 million ADA treasury request was rejected.
