- Charles Hoskinson accused Optim Finance of leading a smear campaign against Cardano.
- The campaign falsely claimed Hoskinson diverted 318 million ADA during the Allegra hard fork.
- Hoskinson announced an audit to verify Cardano’s protocol and disprove the $600 million theft allegation.
A fresh wave of controversy has hit the Cardano ecosystem after its founder, Charles Hoskinson, accused Optim Finance of orchestrating a targeted smear campaign. The allegations center on claims that the DeFi protocol falsely spread information about a $600 million misuse of ADA. Cardano now faces intensified scrutiny, with Hoskinson demanding accountability and immediate corrective actions.
Allegation of $600M ADA Theft Sparks Cardano Community Outrage
In response to accusations that he moved 318 million ADA from Cardano’s ICO unclaimed funds during the 2021 Allegra upgrade, Hoskinson replied definitively. Widespread unrest hit the Cardano community when a group affiliated with Optim Finance first began circulating the accusation. To validate the protocol’s financial integrity, Hoskinson ordered an audit and denied the claim.
The alleged misleading information said that some hidden code within Cardano’s protocol would divert ADA funds without user consent. However, the claim caused uproar against Cardano when no evidence was provided. The founder answered the issue directly and committed to transparency by having it verified by a third party.
The narrative started spreading across social media and news platforms, which terrified Cardano supporters. Though growing increasingly in panic, Hoskinson remained firm in his claim that the story was a fabrication pushed by rival interests. The story hurt Cardano’s image and spread false information without any factual support, he added.
Optim Finance Revealed as Smear Campaign Sponsor
Hoskinson responded to accusations that he moved 318 million ADA from Cardano’s ICC unclaimed funds during the 2021 Allegra upgrade. The original allegation was spread around by a group associated with Optim Finance, and the reaction in the Cardano community was widespread unrest. To affirm the protocol’s financial solidity, Hoskinson called for an audit and denied the claim.
That alleged misleading information was that Cardano’s protocol contained some hidden code that would use ADA funds without the user’s consent. The claim caused uproar against Cardano; however, when upset, no evidence was verified. Then, a founder directly answered the issue and committed to transparency by getting it verified by a third party.
Then, the narrative spread through social media and the news, and Cardano supporters were frightened. In the growing crisis, Hoskinson also continued to insist the story was a fabrication floated by rivals. It was the story that tarnished Cardano’s image and spread falsehoods without any factual backing, he added.
Hoskinson Cuts Ties as Optim Finance Token Falls
Following the fallout, Hoskinson distanced himself from Optim Finance and pulled his stake out of the platform. But he urged Cardano participants to follow suit and quit the project. Many of those who held positions exited and voiced support for Cardano’s leadership.
While making his announcement, Hoskinson also announced that Optim Finance would be launched to support key competitors. He also pointed to projects such as Indigo, pledging resources and providing strategic support to boost competition. It was his clear move to reject any further engagement with Optim Finance. The news was not good for Optim Finance’s token; O’s price fell hard after the allegations came to light. Investors reacted accordingly, as the token fell 23.7% in a day, from $0.30 to $0.2203.
Reated Reading | Bitcoin whale activity explodes with 122,000 BTC added in six weeks