Cardano’s ecosystem has once again been thrown into debate after its founder, Charles Hoskinson, publicly denied allegations that he had misused funds from the blockchain’s treasury.
The claims, made by SLR Cardano Stake Pool on X, accused Hoskinson of diverting treasury resources to finance other projects such as Midnight, a Cardano-linked sidechain focused on privacy and data protection.
The post sparked heated discussion across the Cardano community, with some calling for greater transparency while others dismissed the allegations as unfounded. Several prominent community members defended Hoskinson, emphasizing that Cardano’s treasury is governed by an on-chain, decentralized voting system, which prevents any single individual, including the founder, from misappropriating funds.
Yes 👍 we are trying to kick Charles and company off the chain as he builds midnight and siphons money from Cardano treasury to his other projects
— SLR Cardano Stake Pool (@slrspo) October 15, 2025
One supporter, known as Marine Chad, called the accusations “completely dead,” arguing that Hoskinson has neither access nor incentive to misuse treasury funds.
In a twist, SLR later softened its stance, clarifying that it had “a pleasant time working with the Cardano Foundation” but suggested ongoing tensions between the Cardano Foundation (CF) and Input Output Global (IOG), Hoskinson’s development company, stem from leadership differences rather than financial misconduct.
Hoskinson highlighted this contradiction in a follow-up post, writing: “Love seeing the ‘Charles is the enemy of Cardano’ followed by ‘We have a great time working with the CF.’” His comment underscored what he sees as internal divisions driving unnecessary friction within the community.
Despite the controversy, Hoskinson remains active on the policy front. He recently participated in a regulatory roundtable discussing the Clarity Act, a proposed U.S. framework aimed at harmonizing digital asset rules for exchanges and issuers, signaling that Cardano’s leadership continues to engage with global governance issues even amid internal debates.