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Key Takeaways:
- The ADA token audit report is expected to be released in mid-August, with Hoskinson promising full transparency.
- Hoskinson is exploring a defamation lawsuit, intensifying his response to earlier allegations.
- ADA saw a 4% uptick amid the news, showing continued investor and institutional interest in Cardano.
Cardano founder Charles Hoskinson has revealed that a long-anticipated audit into Input Output Global’s (IOG) ADA token holdings could be released publicly by mid-August. The report is expected to clarify accusations of ADA misappropriation that surfaced in May and triggered widespread debate in the Cardano community.
I just received the first copy of the audit report. I requested a lot more detail and context in several areas, but it's shaping up quickly. I believe we are on schedule for a mid-August release, assuming the work continues at this pace and there are no delays.
— Charles Hoskinson (@IOHK_Charles) July 20, 2025
I will read the…
While promising transparency, Hoskinson has also hinted at potential legal action against those who accused him of wrongdoing, adding a fresh layer of drama to the situation.
ADA Audit Report Nearing Completion
In a recent post on X (formerly Twitter), Hoskinson disclosed that he had received the preliminary copy of the audit report covering ADA token distribution and holdings from 2021. He stated that he has requested more context in several sections and expects the finalized version to be ready for public consumption in August.
The audit, initiated following accusations of misuse of 350 million unclaimed ADA tokens, will be made available via a dedicated website. Hoskinson has pledged to read the full report live on stream for maximum transparency.
Input Output Global’s Chief Legal Officer, Joel Telpner, echoed Hoskinson’s statement about the timeline, though he withheld the names of the law and audit firms overseeing the process.
Hello Cardano Community. We are making good progress on the investigative and audit report that we promised to deliver. The law firm and audit firm are close to completing their work and we are hoping the report will be ready to release by the middle of August. I’ll continue to…
— Joel Telpner (@JTelpner) July 20, 2025
Legal Threat Over Defamation Claims
Alongside the audit update, Hoskinson has escalated his response to the accusations by signaling potential defamation lawsuits. He claims the false allegations have inflicted “hundreds of millions of dollars in brand damage” on Cardano.
Hoskinson plans to consult a defamation law firm in the coming days. However, the move has sparked division within the community, with some arguing that suing blockchain users may harm Cardano’s decentralized ethos and media image.
ADA Price Reacts to Hoskinson’s Statements
The market responded positively to Hoskinson’s transparency pledge. ADA surged 4.19% following the audit update, reaching $0.86, as investor confidence received a boost. This rise aligns with broader market momentum, further fueled by recent DeFi integrations on Base, including the launch of wrapped ADA.
Also Read: Cardano (ADA) Price Poised for 40% Rally Amid Breakout and Rising On-Chain Strength
Despite controversy, institutional support remains strong, especially after the Leios upgrade expanded Cardano’s DeFi capabilities.
As the crypto world awaits the audit, all eyes remain on how Hoskinson navigates both community expectations and reputational risk.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses
I’m your translator between the financial Old World and the new frontier of crypto. After a career demystifying economics and markets, I enjoy elucidating crypto – from investment risks to earth-shaking potential. Let’s explore!
