**Cardano Stake Pool Accuses Charles Hoskinson of Treasury Fund Misuse Amid Community Disputes**
Charles Hoskinson, founder of Cardano and CEO of Input Output Global (IOG), has recently faced allegations from the SLR Cardano Stake Pool accusing him of diverting funds from the Cardano treasury to support his personal blockchain ventures, including the privacy-focused project Midnight. Hoskinson has firmly denied these claims, labeling them as biased, unfounded, and reflective of growing divisions within the Cardano community.
### Allegations and Hoskinson’s Response
The controversy began when SLR posted on social media on October 15, 2025, alleging that Hoskinson and his associates were siphoning money from Cardano’s ecosystem resources to build Midnight, stating:
“We are trying to kick Charles and company off the chain as he builds Midnight and siphons money from Cardano treasury.”
In response, Hoskinson dismissed the accusations as “ironic” and distorted, emphasizing IOG’s significant technical contributions and its vital role in maintaining Cardano’s network stability. He highlighted the company’s long-term development strategy and challenged critics for ignoring these facts amid what he described as bias within the community.
### Rising Tensions Between IOG and the Cardano Foundation
The dispute has intensified an existing rift between IOG and the Cardano Foundation. Recently, the Foundation proposed a substantial budget cut of 31 million ADA for the 2025 development cycle, a move that would notably reduce funding available to IOG.
Hoskinson criticized this proposed reduction as a strategic attempt to weaken IOG’s involvement in Cardano’s evolution. He also scrutinized the Cardano Foundation’s governance, pointing to its unelected board and perceived lack of accountability. According to Hoskinson, the board had even contemplated rejecting the entire ecosystem budget last year, a scenario that could have jeopardized several ongoing initiatives.
Despite these challenges, numerous community members have called for greater collaboration between IOG and the Foundation to preserve the network’s progress and stability.
### Focus on Midnight and Strategic Partnerships
While addressing the internal disputes, Hoskinson remains focused on advancing Midnight—a privacy-oriented blockchain project developed under IOG. He describes Midnight as a significant innovation for Cardano, designed to address gaps in privacy and data protection within the ecosystem.
Midnight has recently announced strategic partnerships with prominent industry leaders including Brave, Google Cloud, Blockchain.com, and Bitcoin.com. These collaborations aim to enhance Cardano’s ecosystem by expanding utility for developers and fostering greater adoption.
Hoskinson emphasized that because Midnight operates as a native Cardano token, its success directly benefits the network by broadening use cases and tackling persistent challenges such as the lack of on-chain oracle systems and stablecoin infrastructure.
### Community Reactions and Governance Concerns
The allegations have reignited broader concerns within the Cardano community about governance, transparency, and treasury management. Notably, past audits have cleared Hoskinson and IOG of any financial misconduct or unauthorized use of genesis keys.
In light of recent claims, some community members, such as Marine Chad, have publicly defended Hoskinson, describing the accusations as “completely dead.” Meanwhile, SLR has moderated its stance, acknowledging a “pleasant time working with the Cardano Foundation” while attributing ongoing enmity to Hoskinson personally.
Hoskinson shared this exchange on social media, commenting on the paradoxical narrative stating:
“Love seeing the ‘Charles is the enemy of Cardano and he needs to leave’ followed by ‘We have a great time working with the CF.’ See how the culture propagates.”
Beyond Cardano, Hoskinson continues to engage in broader blockchain and regulatory discussions, including the Clarity Act roundtable focused on digital asset regulation.
### Looking Ahead: Transparency and Cooperation as Priorities
As the Cardano community navigates these new allegations and internal conflicts, calls for increased transparency and cooperation remain critical. With the network moving closer toward a fully decentralized governance model under CIP-1694, unified efforts from all stakeholders are essential to maintain Cardano’s momentum and foster continued innovation.
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*Stay tuned for further updates as the Cardano ecosystem evolves and works through its governance challenges.*
https://coincentral.com/charles-hoskinson-rejects-new-cardano-treasury-fund-misuse-claims/
