Cardano founder Charles Hoskinson has addressed renewed scrutiny over 1,096 Bitcoin from the project’s early fundraising. He stated the funds were paid to auditors reviewing the original ADA token sale between 2016 and 2017. At the time, the payment was worth an estimated $450,000, but the Bitcoin’s value has since soared to nearly $70 million. This dramatic appreciation has led investors to demand documentation and greater transparency regarding the expenditure.
Charles Hoskinson has provided a detailed explanation regarding 1,096 Bitcoin tied to Cardano‘s original ADA crowdsale. He addressed the issue during an AMA livestream, stating the Bitcoin was not lost.
Hoskinson said the funds were used to compensate three auditors who reviewed the ADA fundraising process. The audit was reportedly requested by then-ADA Foundation chairman Michael Parsons to verify the integrity of the $62 million token sale.
The controversy gained attention after investor Thomas Braziel publicly questioned the funds’ whereabouts. The Bitcoin was allocated to an Isle of Man entity associated with the ADA Foundation, which was dissolved in late 2025.
Hoskinson estimated the Bitcoin was worth between $400,000 and $450,000 when distributed. At current valuations, however, the same amount of Bitcoin is worth nearly $70 million.
Despite Hoskinson’s explanation, some community members remain unconvinced. Braziel and others have called on the ADA Foundation to release contracts, invoices, and payment records for verification.
The dispute occurs amid broader governance discussions within the Cardano ecosystem. Debates over treasury control and institutional accountability are already major topics among stakeholders.
Hoskinson maintains the Bitcoin was properly spent on audit-related work. Whether this settles the matter may depend on if additional records are eventually made public.
