Cardano's creator, Charles Hoskinson, is planning to pursue legal action against individuals who have accused him of manipulating the blockchain to gain control of 318 million ADA tokens. Allegations suggest that he used his Genesis keys in 2021 to access funds belonging to early investors.

Recent claims on social media platforms stated that during the Cardano "Allegra" hard fork, certain unspent token allocations from the original token sale were overwritten, redirecting those tokens to Cardano's reserves. The accusations mentioned that although efforts were made to return the funds to their rightful owners, a significant portion was reportedly withheld. It was also stated that only a small percentage of the tokens supported Intersect, a Cardano governance initiative, with most being staked to generate an estimated 25 million ADA in additional rewards.

Criticism was raised regarding the lack of transparent documentation on the fund's journey, questioning the absence of a verifiable audit trail. Charles Hoskinson refuted these accusations, labeling them as falsehoods and clarified that ADA vouchers became unspendable post the Allegra hard fork.

Hoskinson explained that these assets were moved to a custodial account under the Token Generation Event (TGE) management, processing redemptions for three years. The majority of the ADA sold during the ICO was allegedly claimed by original buyers, with only a small fraction allocated to support Intersect. Hoskinson emphasized that the remaining 0.2% of tokens, after seven years, went back to TGE, contributing to Intersect through a similar process that funded the Cardano Foundation.

Despite the absence of a complete public report from the Cardano team, Hoskinson mentioned that the redemption process is still in progress. He cautioned of potential legal actions against individuals, including Masato Alexander, if they persist in spreading allegations of Input Output Global's involvement in funds misappropriation. Hoskinson intends to demand retractions and apologies from relevant parties once the investigation concludes.