Crypto: Cardano On Alert After Allegations Of Embezzlement
Financial dramas are unfolding one after another but are not alike in the crypto universe. The latest development: Cardano, long praised for its academic rigor, faces an explosive accusation of embezzling approximately $600 million in ADA. Charles Hoskinson, the project’s guiding figure, promises an audit. This case could redefine trust at the very heart of decentralized governance.
The fire has been smoldering since an NFT artist, Masato Alexander, claimed that Hoskinson quietly used a “genesis key” to rewrite the ledger during the 2021 Allegra hard fork.
Supporting this claim: a so-called Move Instantaneous Rewards transaction from October 24, 2021, which transferred 318 million ADA from reserves to what appears to be a treasury fund. The accusation speaks of a total embezzlement amounting to $619 million, a significant portion of the Cardano war chest .
However, Hoskinson presents a more mundane timeline: these tokens originated from ICO allocations that remained unclaimed.
According to him, the majority of the targeted 350 million ADA were claimed by their initial buyers over seven long years — and the remaining shortfall was paid to Intersect, the community governance body. “IOG never pocketed such a sum,” he insists, dismissing the idea of a hidden slush fund.
This denial was not enough to calm Twitter: influencers, on-chain analysts, and ordinary users dissect every UTXO searching for anomalies. Some recall the opacity of other projects during previous crises; others emphasize that Cardano built its reputation on formal rigor.
The perception gap is stark: on one side, a protocol aiming to be exemplary; on the other, the image of a founder suspected of accounting manipulation.
Amid the uproar, the Cardano Foundation and Input Output Global commissioned a third-party “forensic” audit. The report , promised in the coming weeks, aims to trace every ADA since 2015.
Hoskinson, visibly “deeply hurt” by the prevailing skepticism, announces that he will soon entrust his X account to a media team and will revamp his famous AMA sessions. A gesture illustrating the tension between radical transparency and personal fatigue.
Beyond the saga, the episode questions the very nature of crypto governance. Hoskinson, speaking recently at Paris Blockchain Week 2025, advocated for a “collaborative economy” capable of competing with Big Tech soon to be regulated. Ironically timed: the scandal reveals how much a network’s legitimacy depends less on its code than on the fragile trust between founders and community.
What remains is the post-audit phase. If the findings clear Cardano, the process could become a salutary precedent: proving that a blockchain can self-examine without invoking a central authority. Otherwise, the ecosystem will have to accept that no protocol is immune to a human blind spot. Whatever happens, this episode reminds us of a simple truth: in crypto, transparency is not a marketing slogan but a vital imperative. Also discover the statements that hammer Coinbase .
KULR increased his holdings by 83.3 BTC, and his Bitcoin return rate reached 220% this year
Michael Mo, CEO of KULR, a listed company, disclosed on the X platform that the company has increased its holdings of 83.3 BTC, spending $9 million, with an average purchase price of $103,234, and a 220% return on Bitcoin this year. As of May 20, 2025, it holds 800 BTC.
Solana Approaches Golden Cross – Is a Major SOL Rally Imminent?
Solana has been trading at about $170 over the last week after pausing following an earlier rally that began earlier in the month. The recent price action has caught analysts’ attention as most of them monitor signs of a so-called Golden Cross developing—a technical indicator that, if confirmed, might imply increasing momentum to come.
At the time of writing, the 50-day Solana moving average is higher than its 200-day average. Historically speaking, a crossover in a similar manner has produced strong rallies. With this trend persisting, an even 50% price appreciation is possible, with prices potentially pushing SOL up to $240 over the short term.
Traders have also seen a bullish “cup and handle” formation. This formation is normally seen leading into upward breakouts and lends further validity to the suggestion that prices might go further up. The $200 level is now a critical zone to monitor.
Crypto analyst Ali Martinez says that a close above $200 would validate the present bull chart setup. He has also shown a key area for a major breakout. That level is as much a matter of psychology as it is a wave strike price for an expiring set of call options on June 27. Traders who anticipate more short-term upward pressure have acquired these.
Interest in their options seems to be an indication of wider opinion. Solana rose 57.75% from April 8, outpacing Bitcoin’s advance over the same span. As Bitcoin broke $103,000, Solana’s more rapid progress sees it standing out among large tokens so far in 2025.
In spite of optimism, technical levels on the downside remain in play. Dropping below $160 is likely to reverse recent progress and take SOL all the way to $150. Analysts point out that keeping above $160 for the remainder of 2025 is required for any serious chance of breaching $200.
The Solana optimism is more than about price trends. Two Solana futures ETFs listed in the U.S. slipped into existence quietly in March. On March 20th, Volatility Shares listed the Solana ETF (SOLZ) and the 2x Solana ETF (SOLT). Although they did not compete with the flashy start for the inaugural Bitcoin ETF , they have received a good reception so far.
Inflows for SOLZ have been $13 million and $21 million for SOLT. With Solana’s recent success, assets under management now total $17 million and $32 million, respectively. That is small but significant, particularly when contrasted with Ether futures ETFs that could barely draw more than $30 million combined soon after their release in 2023.
Early numbers paint a picture of increasing investor optimism, even if Solana is far behind behemoths such as Bitcoin , whose market cap stands at $2 trillion. Ether, for its part, is at $300 billion, while Solana is at about $90 billion.
‘Rich Dad Poor Dad’ Author Urges: Hold Bitcoin, Not BTC ETFs
Robert Kiyosaki, renowned author of ‘Rich Dad, Poor Dad’ and outspoken advocate of Bitcoin (BTC), recently offered investment advice. He has renewed his warnings about the global financial system and is once again encouraging people to turn to alternative assets, specifically physical gold, silver, and BTC. Moreover, he urged his followers to hold Bitcoin and not the spot BTC ETFs.
In a pair of statements posted on X on May 17 and 18, Kiyosaki expressed deep concern about what he perceives as an escalating financial collapse rooted in decades of systemic problems. He referenced the removal of the U.S. dollar from the gold standard in 1971 as the origin of recurring financial turmoil. “Each crisis gets bigger because they never solve the problem…a problem which started in 1971 when Nixon took the US Dollar off the gold standard,” he wrote .
Kiyosaki connected historical financial bailouts to a troubling trend. Recalling events of the past few decades. He noted, “In 1998, Wall Street got together and bailed out a hedge fund, LTCM: Long Term Capital Management. In 2008, the Central Banks got together to bail out Wall Street. In 2025, long-time friend, Jim Rickards, is asking Who is going to bail out the Central Banks?”
Citing financial commentator Jim Rickards, Kiyosaki warned that the next economic crisis may erupt from a staggering burden of student loan debt. “According to Jim Rickards, the next crisis will be triggered by the collapse of $1.6 trillion in student loan debt,” Kiyosaki posted.
Rather than relying on institutional support or traditional savings, the financial author advocates for individual action. “You bail you and your family out by saving real gold, silver, and Bitcoin… No ETFs,” he stated. Reiterating a key principle from his bestselling book, he added: “As I stated over 25-years ago, in Rich Dad Poor Dad, ‘The rich don’t work for money’ and ‘Savers are losers.’”
Kiyosaki also issued a stark warning against investing in Bitcoin ETFs, a growing trend among crypto investors. He believes such vehicles are insufficient and potentially misleading. “No Bitcoin ETFs,” he cautioned. “ Just Bitcoin. ”
Nonetheless, BTC ETFs have been strong, with $41.74 billion in inflows since launch in January 2024. Furthermore, in the first half of May alone, the ETFs amassed an impressive inflow of 26,700 BTC.
In a separate post a day earlier, Kiyosaki framed the current monetary system as collapsing under its own weight. When asked rhetorically why gold, silver, and Bitcoin would continue to rise in value, he responded, “The Marxist Central Bank system is crashing… Many going bankrupt.”
Maintaining his bullish stance on Bitcoin, Kiyosaki emphasized his personal investment strategy. “Keep HODLing,” he urged. Kiyosaki added that he is “buying more Bitcoin. Further, he wrote, “I predict Bitcoin climbs to $250k this year. Buy more. Do not sell.”