Hoskinson Closes the Book on Genesis ADA Audit as Governance Questions Persist

Cardano founder Charles Hoskinson has said he will no longer address questions about the Genesis ADA audit, stating that the matter is settled following the release of the full audit report. The comments come as debate resurfaces within the Cardano community over transparency and governance tied to early ADA allocations.

Audit Clears Cardano, Yet Governance Questions Remain

The dispute gained renewed attention after an online user known as Darkhorse questioned the handling of 318 million ADA linked to unredeemable presale vouchers. The funds, valued at roughly $50 million, were examined in an audit that Hoskinson says cleared all parties involved. While Darkhorse stopped short of alleging theft, he maintained that governance-related concerns remain unresolved.

Much of the criticism focused on whether the audit met the expectations of a project that presents itself as transparent and DAO-driven. According to Darkhorse, the report resembled an internal compliance review rather than an examination of governance decision-making. He pointed to uncertainty around how decisions were approved, how funds were transferred, and who authorized those actions.

Critics highlighted several outstanding questions:

• Whether the movement of 318 million ADA received formal DAO approval.
• Whether transactions involving the funds were fully visible on-chain.
• How and where the funds were allocated or spent.
• Whether unused ADA was transferred to Cardano’s treasury.
• Whether public governance oversight was applied at any stage.

Hoskinson dismissed calls for further clarification, saying the audit addressed all relevant concerns. He described the matter as closed and said no additional discussion would take place. In his view, the findings showed no wrongdoing, and continued debate only extends an issue that has already been resolved.

ADA Slips Further as Governance Debate Weighs on Market Sentiment

Despite Hoskinson’s comments, community participants remain divided on the issue. Supporters argue that revisiting the issue distracts from development and adoption efforts. Some characterized the renewed scrutiny as an attempt to provoke controversy rather than uncover new information.

Others see the response as insufficient, arguing that transparency involves more than the absence of wrongdoing. According to them, it includes clear governance processes, particularly when large sums are involved. And as such, closing the discussion without addressing governance questions risks weakening trust.

Even as the disagreement unfolds, ADA’s price performance remains under pressure. Cardano has slipped over 57% since the turn of the year and continues to trade below $0.40.

Separately, rumors accused Hoskinson of shedding his ADA holdings near its 2021 peak, around $3. However, he has since dismissed these claims as false and misleading.

Following an over 1% intraday drop, ADA trades at $0.36, validating the broader indicators pointing to a downtrend. Hoskinson has recently attributed weak market performance to low trust across the crypto sector, citing years of scams, hacks, and market manipulation. According to him, any sustained recovery depends on renewed confidence and improved market sentiment.