TLDR
- SLR Cardano Stake Pool accused Hoskinson of using treasury funds for Midnight.
- Hoskinson called the treasury misuse allegations biased and unfounded.
- Cardano Foundation proposed cutting 31 million ADA from the 2025 budget.
- Midnight formed partnerships with Brave, Google Cloud, and Blockchain.com.
Cardano founder Charles Hoskinson has responded to new allegations claiming he diverted funds from the project’s treasury for personal ventures. The accusations, made by a Cardano stake pool operator, reignited ongoing disputes within the community about leadership, funding, and governance. Hoskinson dismissed the claims as baseless and said they reflect growing division and bias within the Cardano ecosystem.
Hoskinson Denies Treasury Fund Misuse Allegations
Charles Hoskinson, CEO of Input Output Global (IOG), addressed accusations that he misused funds from the Cardano treasury. The claims came from the SLR Cardano Stake Pool, which alleged that Hoskinson redirected ecosystem resources to his other blockchain projects, including Midnight.
Hoskinson rejected the accusations, calling them “ironic” and rooted in bias. He said critics are distorting facts and ignoring IOG’s contributions to Cardano’s development. In his statement, he noted that the company’s technical progress and long-term strategy have played an essential role in the network’s stability.
The dispute began after SLR posted on social media that funds were being diverted. “We are trying to kick Charles and company off the chain as he builds Midnight and siphons money from Cardano treasury,” the group stated on October 15, 2025. The post drew mixed reactions across the Cardano community, with some users defending Hoskinson and others calling for more transparency.
Growing Rift Between IOG and the Cardano Foundation
The recent tension has added pressure to the ongoing conflict between IOG and the Cardano Foundation. The disagreement escalated after the Foundation proposed cutting 31 million ADA from the network’s 2025 budget, a move that would reduce IOG’s development funding.
Hoskinson described the budget reduction as an attempt to weaken his team’s role in the project. He also criticized the Foundation’s internal structure, pointing to what he described as an unelected board that lacks accountability. He claimed that the board had even considered rejecting the ecosystem’s entire budget last year, which could have disrupted ongoing initiatives.
Despite these issues, several community members have urged both sides to work together to maintain the network’s progress. The division has raised broader concerns about governance as Cardano moves toward a fully decentralized decision-making system under CIP-1694.
Focus on Midnight and New Partnerships
While the dispute continues, Hoskinson remains focused on advancing Midnight, a privacy-oriented blockchain project developed under IOG. He described it as one of Cardano’s most important innovations and a step toward addressing gaps in privacy and data protection.
Midnight has announced collaborations with Brave, Blockchain.com, Bitcoin.com, and Google Cloud. These partnerships aim to expand Cardano’s ecosystem and increase utility for developers. Hoskinson stated that since Midnight operates as a native Cardano token, its success directly strengthens the network’s use cases and adoption.
He also said that Midnight could help solve long-standing challenges, such as the absence of on-chain oracle systems and stablecoin infrastructure. Despite community tensions, he emphasized that innovation within Cardano remains active.
Community Reactions and Audit References
The new allegations echo past controversies involving the Cardano treasury and governance keys. A previous audit cleared Hoskinson and IOG of wrongdoing, finding no evidence of financial misconduct or unauthorized use of genesis keys.
In response to the recent claims, a community member known as Marine Chad defended Hoskinson, calling the accusations “completely dead.” SLR later adjusted its tone, saying it had a “pleasant time working with the Cardano Foundation” but maintained that “the IOG enmity with CF is purely a Charles issue.”
Hoskinson reposted the exchange, commenting, “Love seeing the ‘Charles is the enemy of Cardano and he needs to leave’ followed by ‘We have a great time working with the CF.’ See how the culture propagates.”
He continues to engage in broader blockchain discussions, including participation in the Clarity Act roundtable focused on digital asset regulation. As the Cardano community debates these new claims, both transparency and cooperation remain key to the project’s ongoing governance efforts.
