Cardano Founder Threatens Lawsuit Over 318 Million ADA Seizure Claims
The accusations, which recently emerged on the social media platform X, suggest he used his Genesis keys in 2021 to seize funds belonging to early investors.
Last week, NFT artist Masato Alexander claimed that during the Cardano 'Allegra' hard fork, the network overwrote certain unspent token allocations from the original token sale. It then rerouted those tokens to Cardano's reserves.
'In 2021, the Cardano 'Allegra' Hard Fork (HF) wasn't just a routine upgrade. It contained an extra payload. This HF effectively ERASED the original ICO UTxOs holding the ₳318M and swept the funds into the Cardano reserves,' Alexander wrote.
Alexander claimed that although they intended to reissue the funds to their rightful owners, they allegedly withheld a large portion.
He further claimed that only a small percentage of the tokens funded Intersect, a Cardano governance initiative. Most of the tokens, he alleged, were staked to generate an estimated 25 million ADA in additional rewards.
'Only a tiny fraction went to Intersect… Where did the VAST majority of that ₳318 MILLION actually go after being moved from reserves? Separately, the funds were staked, earning 25m additional,' Alexander alleged.
In addition, Alexander criticized the lack of clear documentation on the fund's path, suggesting there is no verifiable audit trail.
Ironically, Charles recently emphasized needing community input for scaling solutions, citing the importance of governance.
Yet, when ₳318M was at stake, he acted unilaterally via genesis keys to alter the ledger and control these funds.
Interesting. pic.twitter.com/7aeInvGWok
— masato_alexander (@masatoalexander) May 7, 2025
However, Hoskinson has strongly rejected the allegations. In a response posted to X, he described the claims as 'lies' and clarified that the ADA vouchers became unspendable following the Allegra hard fork.
The Cardano founder explained that these assets were transferred to a custodial account managed by the Token Generation Event (TGE). This account continued processing redemptions for three years.
'The Ada vouchers became unspendable after the hard fork. They were rolled into a custodial account controlled by the TGE that then continued redemption for 3 more years to distribute the genesis funds to the original buyers,' he said.
Hoskinson stated that original buyers eventually claimed 99.8% of the ADA sold during the ICO. He added that the team allocated only 0.2% of the tokens to fund Intersect.
'After seven years, the remaining 0.2 percent were returned to the TGE and donated to Intersect through the same process that funded the Cardano Foundation,' he added.
While the Cardano team has not released a full public report, Hoskinson noted that the redemption process is still ongoing.
He warned that he will sue Alexander and others who repeat the claims if they keep alleging that Input Output Global stole funds.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time Business News
9 hours ago
- Time Business News
Alexander Nieves: Faith-Driven Nonprofit Leader and Founder of Nieves Ministries inColorado
Alexander Nieves is an American nonprofit leader, community organizer, and security consultant based in Colorado. As the founder of Nieves Ministries and Alexander is committed to meeting community needs through faithbased outreach, safety services, and cultural up in a low-income household and born with vision impairment in one eye,Alexander knows firsthand the challenges faced by marginalized communities. Hispersonal journey—from overcoming economic hardship to leading a multi-programnonprofit—demonstrates his passion for service and authentic leadership. ⸻ Nieves Ministries: Serving Colorado CommunitiesFounded in 2024, Nieves Ministries is a Colorado-based nonprofit focused on helpingthose most in need through a range of programs:✅ Pinnacle Defense Pinnacle Defense is Colorado's first nonprofit security company, created under NievesMinistries to provide professional guard services for businesses and events. With amission of community safety, Pinnacle Defense offers armed and unarmed security staffedby trained personnel. Unlike for-profit firms, their focus is on affordability, partnership,and service to the local community.✅ Puerto Rican Chamber of Commerce of Colorado Nieves Ministries also sponsors the Puerto Rican Chamber of Commerce of Colorado, aninitiative dedicated to empowering Puerto Rican and Latino-owned businesses whilecelebrating Puerto Rican culture. The Chamber hosts the Viva La Isla Del Encanto Festival(formerly the Puerto Rican Festival of Aurora) to promote cultural pride and communityengagement throughout Colorado.✅ Catalyst Church Catalyst Church is the faith and discipleship arm of Nieves Ministries, offering onlineservices, Bible teaching, and community connection. Catalyst Church is dedicated tospreading the Gospel online, supporting new preachers, and providing spiritual guidanceto people in Colorado and Bible Verse Facebook PageNieves Ministries also runs a Daily Bible Verse Facebook page in partnership with Point ofGrace Ministries. With nearly 10,000 followers, the page delivers scripture andencouragement every day, helping people stay connected to their faith and the Word ofGod.⸻ Building Community Through Partnerships Alexander believes in collaboration to maximize impact. Nieves Ministries has partneredwith local and national businesses and organizations that share their mission of service,including:DXL in Aurora, Colorado – supporting clothing needs for underserved communitiesPottery Barn – providing donated goods for families in needUnited Airlines – supporting broader outreach initiatives and eventsThese partnerships help Nieves Ministries deliver essential resources, host events, andsupport families throughout the Denver metro area.⸻ Alexander's Bond with His Twin Brother Zachary Nieves A central part of Alexander Nieves' story is his lifelong bond with his twin brother, ZacharyNieves, who has cerebral palsy. Growing up, Alexander often helped care for Zachary, anexperience that shaped his values of compassion, responsibility, and advocacy for peoplewith relationship is a testament to family, resilience, and mutual support. Alexandercredits Zachary with teaching him patience and unconditional love, motivating hiscommitment to create inclusive programs that serve people of all abilities.⸻ Get Involved with Nieves Ministries Nieves Ministries is always looking for people who want to make a difference in can:Volunteer at events or outreach programsPartner as a business sponsorDonate to support ongoing initiativesJoin Pinnacle Defense or other programs as staff or volunteers Learn more about volunteering, donations, and partnership opportunities at: About Alexander Nieves Alexander Nieves is more than a nonprofit executive—he is a man of faith, a devotedhusband, and a passionate community leader who believes in building bridges, creatingopportunities, and serving others with a vision for sustainable, faith-driven community development, Alexander continuesto grow Nieves Ministries, Pinnacle Defense, the Puerto Rican Chamber of Commerce,Catalyst Church, and his daily Bible outreach—uniting people across Colorado in serviceand fellowship. For more about Alexander's story, programs, and mission, visit: Alexander Nieves is more than a nonprofit executive—he is a man of faith, a devotedhusband, and a passionate community leader who believes in building bridges, creatingopportunities, and serving others with a vision for sustainable, faith-driven community development, Alexander continuesto grow Nieves Ministries, Pinnacle Defense, the Puerto Rican Chamber of Commerce,Catalyst Church, and his daily Bible outreach—uniting people across Colorado in serviceand fellowship. TIME BUSINESS NEWS
Time Business News
9 hours ago
- Time Business News
Jeremiah Banks: Building Safer Communities with Pinnacle Defense and Nieves MinistriesJeremiah Banks
Co-Founder | Director, Pinnacle Defense | Community LeaderOverviewJeremiah Banks is an American community leader and security professional based inDenver, Colorado. He co-founded Nieves Ministries alongside Alexander Nieves and serves as the Director of Pinnacle Defense, the nonprofit security arm of the organization. Partnership & Community WorkJeremiah and Alexander first met in middle school and deepened their bond in high school,eventually joining forces to launch Nieves Ministries, a faith-driven nonprofit serving localcommunities through outreach programs, cultural initiatives, and safety services ■ . Intheir joint statement:'This proclamation isn't about us—it's about what's possible when acommunity comes together,' said Banks. ■ Pinnacle Defense As Director of Pinnacle Defense, Jeremiah leads Colorado's first and only nonprofitsecurity service. Under his guidance, Pinnacle Defense has become fully licensed throughthe City and County of Denver, offering both armed and unarmed protection forbusinesses, events, and residential communities. Jeremiah holds both a Denver securityguard card and MED badge, ensuring high standards in nonprofit security delivery ■ .Programs and EventsJeremiah has overseen a range of key initiatives under Pinnacle Defense and Nieves Ministries, including: Membership-based security services for businesses, HOAs, and events Cultural programming like the Puerto Rican Festival and community events events Humanitarian outreach such as feeding the homeless, back-to-school drives, and holiday distributions ■ drives, and holiday distributions ■ Awards & Recognition In mid-2025, Jeremiah and his co-founder Alexander received a city proclamationhonoring their dedication to feeding the homeless, supporting people with disabilities, andstrengthening neighborhoods through faith-led public service ■ .Personal & Professional BackgroundJeremiah brings a background in security services and community safety to his leadershiprole. The exact details of his education and personal history aren't publicly documented,but his hands-on involvement and frontline management in nonprofit security demonstratehis commitment ■ . Contact & Follow In mid-2025, Jeremiah and his co-founder Alexander received a city proclamationhonoring their dedication to feeding the homeless, supporting people with disabilities, andstrengthening neighborhoods through faith-led public service ■ .Personal & Professional BackgroundJeremiah brings a background in security services and community safety to his leadershiprole. The exact details of his education and personal history aren't publicly documented,but his hands-on involvement and frontline management in nonprofit security demonstratehis commitment ■ . Work Phone: (720)772-7076 (Pinnacle Defense) ■ (720)772-7076 (Pinnacle Defense) ■ Instagram: @ @ Email: jeremiah@ (through Nieves Ministries) jeremiah@ (through Nieves Ministries) Community Event Listings: watch for Jeremiah on the 'Welcome to CALLYWOOD' Facebook event page ■ TIME BUSINESS NEWS
Yahoo
17 hours ago
- Yahoo
Taxing the wealthy won't solve Rachel Reeves's problems
For a moment, the mask seemed to slip. While repeating Labour's manifesto pledge not to raise taxes on working people, Heidi Alexander, the Transport Secretary, went off-script. 'We made a commitment in our manifesto not to be putting up taxes on people on modest incomes, working people. We have stuck to that,' she told Trevor Phillips on Sky News. It is the first time modest earners have been singled out. 'When it comes to taxation, fairness will be our guiding principle,' she added. Alexander also failed to deny that ministers had discussed a wealth tax at a Cabinet away day, saying only 'not directly' when asked if it had been mentioned. Her remarks are a signal of what is to come. Rachel Reeves is faced with a fiscal black hole that could be as large as £30bn come the autumn Budget. With gilt markets on edge and attempts by Sir Keir Starmer to curb public spending ending in tears, it can only mean one thing: big tax rises. Alexander's comments suggest it will be the middle class who are targeted. But economists are warning that there are limits to how much Reeves can raise from higher earners. 'We can have bigger state and more tax on average earners. We can have smaller state and real cuts in public services and benefits. That's it. The choice,' Paul Johnson, the former Institute of Fiscal Studies (IFS) head, warned last week. David Miles, a member of the Office for Budget Responsibility's (OBR) committee that scrutinises the Government's spending plans, was even more outspoken in his warning to the Chancellor. 'If you try and keep increasing the ratio of taxes to GDP, and look for more and more taxes wherever you can find them, it's very likely that at some point you start creating so many disincentives – to save, invest, work – that you start doing some serious damage to the growth potential of the economy, and it backfires on you,' Miles told CNBC on Friday. 'The ratio of taxes to GDP in the UK is now getting to levels that we really haven't seen since the Second World War. The scope to simply just raise more and more tax revenue is definitely limited.' Over the past 15 years, Britain's high earners have seen their taxes rise significantly, while those on low and middle incomes have been granted big cuts. This means that as Britain's tax burden has risen towards a post-war high, those on modest incomes have escaped the direct hit. Average earners – typically on around £35,000 – are taxed less than at any point in the last 50 years, the IFS noted in 2024. Their tax bill was actually £2,000 lower last year than in 2010. They can in part thank George Osborne, the former chancellor, who raised the tax-free allowance from £6,475 in spring 2011, gradually taking it to £11,500 in 2016-17. It has since risen further to £12,500. The gap between how average and higher income workers are treated by the tax system makes the UK stand out internationally. It ranked 32nd for how much middle earners are taxed among 38 mostly rich countries last year, OECD data shows. Meanwhile, high earners have been hit with several blows over the past 15 years. Their wages have barely risen in real terms, while paying much more in taxes than previously. Anyone fortunate enough to make £200,000 last year was taxed £10,000 more than they would have been in 2009, according to the IFS. As a result, the Treasury has come to rely more on its golden geese. At the turn of the millennium, the top 1pc of earners paid just over 21pc of all income tax receipts. This year they're projected to pay almost 27pc, HMRC figures show. In contrast, the bottom half of all workers contribute just 10pc of all income tax receipts – down from 11.6pc. The lack of appetite for spending cuts suggests the UK is poised to become more like continental Europe. This would mean tax rates would have to rise for both middle and high earners. But the jump would be far bigger for those on middle incomes, according to research. While internationally comparative analysis is hard to come by, one paper from 2019 found that the UK already ranked lowest for taxes on average earners when comparing with 10 wealthy European countries. However, when looking at taxes on the very highest earners, the UK ranked sixth – only a nudge below the famously high-tax Denmark. The fact that the highest earners are yet again being eyed up after welfare about-turns by revenue-hungry officials has not gone unnoticed. One disgruntled so-called 'Henry', an abbreviation for high earners who are not yet rich yet, was quick to ask for recommendations for where to relocate to, declaring on a Reddit forum: 'I've reached my limit for sucking up tax rises.' 'Can't wait for them to spout the 'those with the broadest shoulders' sh--e again, only to wring pensions, Isas, and PAYE. Why is it always working people that get screwed?', another chimed in. Such complaints were foreshadowed by the OBR at the October Budget. The watchdog warned that Reeves was hitting a small group of people with several overlapping policies – such as VAT on school fees, changes to inheritance tax and higher capital gains levies. This makes the behavioural response more difficult to predict, raising the risk of the disincentives that Miles at the OBR warned of. The response to such concerns from many on the Labour Left has been to suggest a wealth tax – ignoring that Britain already taxes wealth in many different ways such as through stamp duty, inheritance tax and capital gains levies. Stuart Adam at the IFS says: 'An annual wealth tax would need to apply broadly to all assets to ensure that it was not easy to avoid. Such a tax could raise significant revenue if it applied to the bulk of the UK's wealth – that would include the homes and pensions of the middle class.' What most people think of when they talk of wealth taxes is probably not their own pension or house. All of this leaves few good options for Reeves. Finding up to £30bn while sparing workers on 'modest' incomes may prove her toughest challenge yet. Broaden your horizons with award-winning British journalism. Try The Telegraph free for 1 month with unlimited access to our award-winning website, exclusive app, money-saving offers and more. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
