Charles Hoskinson Reveals What Happened to 1,096 BTC From Cardano’s Early Days

Critics are now calling for invoices and approval records to be published alongside Hoskinson’s explanation.

Charles Hoskinson said that a disputed stash of 1,096 BTC from Cardano’s early crowdfunding days was used to pay for an audit in 2016/2017.

The Cardano founder made the revelation during a recent livestream AMA, in which he talked about governance, Discord, and community management.

Hoskinson Clarifies Questions in AMA

Cardano’s crowdsale, which ran from October 2015 to January 2017, raised around 108,844 BTC, with 1,096 of this allocated to an Isle of Man Foundation entity that did some early legal and operational work for the project.

The organization has since been dissolved, but Thomas Braziel, founder of 117 Partners, recently questioned the value of the transaction and demanded a full account of where the BTC went and why they received it.

Hoskinson said during the weekend AMA that the funds date back to a March 2026 email from Michael Parsons, the project’s Chairman at the time, in which he asked to be compensated for auditing the crowdsale. He also clarified the value of the BTC, claiming that the bill was much smaller than what critics imply.

“The closing price of Bitcoin March, 13 2016, was $414. That’s about $400,000 for three auditors,” said Hoskinson.

According to him, the money was used to pay three independent reviewers, namely Michael Parsons, John McGuire, and Bruce Milligan.

Meanwhile, Hoskinson argued that the repeated calls for transparency are being made to start controversy as opposed to actually resolving anything, saying that any response leads to another round of accusations and ends up draining resources that could be used to grow the ecosystem.

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Braziel Still Has Doubts

However, Braziel wasn’t satisfied with his response, arguing that the session created more questions than it resolved. He asked on social media how IOHK came to control roughly 95% of the BTC raised and got billions of ADA, while the Foundation received only a fraction of the total.

“If that’s the explanation, then the next step is simple: publish the invoices, agreements, and approvals, and payment records.”

The investor also believes the figure is inaccurate, saying that if an audit did happen, it likely took place later, when the OG cryptocurrency was already worth much more than it was during the early fundraising years. In his view, “the numbers just don’t seem to add up.”

The development comes as Cardano is in the midst of a raging debate about its treasury, governance, and engagement, with the co-founder revealing that the project is working on a plan to move its ADA community to Discord.

At the same time, the Cardano Foundation’s budget has come under public scrutiny, with only a third of the proposals approved under the new process. Organizers have also canceled their planned 2026 Singapore Summit after a $7.8 million ADA treasury request linked to the event was rejected.