Charles Hoskinson recently explained the origin of Cardano’s controversial 1,096 Bitcoin. He says the funds came from an audit conducted in 2016 following the initial sale of ADA.
Charles Hoskinson, the creator of Cardano, recently mentioned three auditing firms and a Bitcoin price from a previous year, addressing a long-standing question that has followed the project from the beginning.
Hoskinson Traces the 1,096 Bitcoin to a 2016 Audit
In a recent livestream, Charles Hoskinson explained that the disagreement over funds originated with an email sent in March 2016 by Michael Parsons, who was then leading the Cardano Foundation.
Parsons requested payment for reviewing the fundraising event – a crowdsale held between 2015 and 2017 that brought in approximately $62 million, primarily from investors in Japan.
He pulled the historical price to argue the bill was smaller than critics imply.
“The closing price of Bitcoin March 13, 2016 was $414,” said Hoskinson.
Separate data confirms Bitcoin was trading around $412 on that day, backing up his claim. Based on that calculation, he explained the payment was intended to cover the work of three specific reviewers.
That cost around $400,000 for three auditors – Michael Parsons, John Maguire, and Bruce Milligan – to review a fundraising event in Japan and make sure funds weren’t misused.
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The same 1,096 BTC would be worth about $70 million today, the gap that keeps the dispute alive.
What really stands out to me is the question of who actually received the funds. It’s important to remember that Charles Parsons stepped down as chairman of the Foundation back in 2018. This followed a public disagreement with IOHK and EMURGO, who voiced concerns about a lack of transparency and issues with how things were being governed.
The Cardano Foundation Council has a new interim chairman. Michael Parsons has stepped down, and Pascal Schmid will be taking over as Chairman immediately.
— Cardano Foundation (@Cardano_CF) November 13, 2018
Hoskinson Calls the Questions Bad Faith
Hoskinson argued the recurring demands for transparency aim to inflame rather than resolve.
“The purpose of the allegation isn’t the allegation. It’s the rage.”
He explained that responding to each claim just leads to more accusations, and wastes funds that could be used to help the system thrive.
This accusation comes after he publicly voiced criticism of the Foundation and reduced his involvement in promoting ADA.
Braziel Wants the Receipts
Investor Thomas Braziel felt the AMA’s response to his inquiry raised more issues than it solved. He has requested to see supporting documents like invoices, approval forms, and payment confirmations.
It was never about the cost of investigating what happened. The real issue was tracking down the missing 1,096 Bitcoin, figuring out who got it, and understanding why it disappeared.
Braziel also wondered why IOHK managed to retain about 95% of the Bitcoin raised, while the Foundation received only a small portion.
Cardano (ADA) is facing increasing pressure as the Foundation’s funds decrease. Currently, ADA is trading around $0.1669, a roughly 3% drop for the day, and ranks 17th in terms of overall market value.
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2026-06-14 20:46