Cardano founder Charles Hoskinson is considering launching a community class action lawsuit against those slandering crypto projects.
In a X post yesterday, Hoskinson asked Cardano stakeholders, particularly ADA holders, developers and DAPP builders, if they would consider taking part in a class action lawsuit against those who denigrate the Crypto project.
He linked potential legal actions to future releases of an audit report focusing on the project’s 2017 Initial Coin Provider (ICO) redemption process.
NFT artists accused Hoskinson of diverting ICO funds
Due to context, tensions have escalated within the Cardano community over the past few days. It started this week after NFT artist master’s degree Alexander accused Hoskinson of diverting 318 million ADA tokens from the 2017 ICO.
He claimed that Hoskinson and I/O Global (IOG) were embedded in the 2021 Allegra Hard Fork, allowing them to redirect funds worth perhaps $619 million.
Alexander claimed that only a small portion of the funds were used to establish Intersect, a membership-based organization in Cardano. He further alleged that the rest were collected in IOG-controlled sanctuaries via alleged exploits in the Allegra upgrade.
These charges raised questions about Hoskinson’s credibility and urged the audit to be accepted to clarify escalating claims. As mentioned above, this audit will be conducted by BDO International, a well-known accounting and auditing company, and McDermott Will & Emery, a law firm.
Companies will provide a detailed report on their findings and will reveal whether Hoskinson and IOG misused funds related to the ICO.
Strong community support for collective action
It remains unclear when the report will be published, but Hoskinson has teased a class action lawsuit against those who honor Cardano. He created the X poll to ask Cardano community members, particularly owners, DAPP builders and developers, whether to take part in this class action lawsuit.
So far, the polls have received 10,306 votes, signaling 69% of these participants’ intentions to participate in the lawsuit. The voting exercise will end in the next four days on May 25th. Based on current poll results, most Cardano enthusiasts are seeking damages from those who took part in class lawsuits and spread false claims.
Hoskinson has not provided details regarding the potential lawsuit, including who could be included as defendants.
Cardano Founder Tells Class Action Lawsuits Against Party Defamatory Cardano
Hoskinson bashes crypto media more than malicious reports
Meanwhile, the founder of Cardano issued a statement expressing his anger over the reporting of crypto media after the fraudulent misappropriation Saga. Hoskinson proposed that most media outlets have abandoned their goals and fair reporting on the issue in favor of “the biggest viral clickbait.”
Hoskinson emphasized that no evidence of fraud has been found, and noted that all parties involved in the ICO reimbursement process publicly confirmed that no fraud had occurred. He noted that regulators, law enforcement agencies or token buyers have not filed any allegations of fraud related to the ICO.
According to him, the only accusation that referred to Alexander’s claim came from someone with no insider knowledge of the ADA sales process.
As a result, he said it was fundamentally irresponsible for the media to spread the news with malicious headlines suggesting the possibility of a massive theft.
Hoskinson described these headlines as damaging, saying that repairs took several months after the audit and needed huge amounts of funds. After the Saga, Hoskinson revealed plans to reduce the presence of social media.
According to him, the media team will manage his social accounts after the audit. He also intends to change the way he does his usual AMA sessions. However, this change will not affect his physical meetings at crypto events.
I’m absolutely tired of implementing cryptographic media. Similarities of objective or fair reporting were discarded through the window in favor of the biggest virus clickbait.
The fact is that all parties involved in redemption of ADA vouchers have publicly stated…
– Charles Hoskinson (@iohk_charles) May 20, 2025
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