Hoskinson Links Cardano’s 1,096 BTC to 2016 Crowdsale Audit

During a weekend livestream, Charles Hoskinson traced the disputed 1,096 Bitcoin (BTC) to a March 2016 email from Michael Parsons, then chairman of the Cardano Foundation, requesting payment to audit the original ADA crowdsale. The crowdsale raised about $62 million between 2015 and 2017, largely from Japanese investors.

Hoskinson named three auditors-Michael Parsons, John Maguire and Bruce Milligan-and used the March 13, 2016 closing price of Bitcoin at $414 to calculate the fiat value of the payment at that time. Independent historical records place Bitcoin near $412 on that date. Using that price, he said the transfer would represent a mid-six-figure payment intended to cover the three reviewers.

The 1,096 BTC is worth about $70 million at current prices, a valuation gap that has kept the transfer under scrutiny. Parsons left the Cardano Foundation chairmanship in 2018 after public disputes with other project stakeholders; Pascal Schmid became interim chairman following Parsons’s resignation.

Hoskinson criticized recurring demands for more detail, arguing they inflame rather than resolve the issue. He warned that each response prompts further allegations and diverts resources from development. He has reduced daily promotion of ADA and has publicly criticized the Foundation’s governance in recent months.

Investor Thomas Braziel said the livestream clarified part of the record but left questions unanswered and asked for documentary proof, including invoices, approvals and payment records. He asked: “The question was never whether audits cost money. The question was where 1,096 BTC went, who received it, and why.”

Cardano’s token ADA traded near $0.1669, down about 3% on the day and ranked 17th by market value. Community calls for clearer accounting of early funds have grown as the Foundation’s reserves have narrowed. Hoskinson’s account is the most detailed public explanation so far of the 1,096 BTC transfer, and the dispute is likely to continue until supporting records are produced.