Cardano founder Charles Hoskinson this week disclosed that 1,096 Bitcoin from the project's early crowdfunding was used to pay for an independent audit in 2016 and 2017 — a claim that has drawn sharp questions from Thomas Braziel, founder of 117 Partners. The revelation comes as the Cardano community debates treasury governance and after the cancellation of the planned 2026 Singapore Summit.
The audit payment
Hoskinson said the BTC came from the roughly 108,844 Bitcoin raised between October 2015 and January 2017. The 1,096 BTC was allocated to an Isle of Man Foundation entity that performed early legal and operational work. According to Hoskinson, the Bitcoin price on March 13, 2016, was $414, making the payment worth about $400,000 for three independent reviewers: Michael Parsons, John McGuire, and Bruce Milligan.
Braziel's demand for full accounting
Thomas Braziel pushed back, arguing the explanation creates more questions than answers. He demanded a full accounting and said the numbers don't add up. Braziel also questioned how IOHK came to control roughly 95% of the BTC raised and received billions of ADA, while the Cardano Foundation received only a fraction. He believes the audit likely took place later, when Bitcoin was worth much more, making the stated $400,000 figure inaccurate.
Hoskinson pushes back
Hoskinson argued that repeated calls for transparency are meant to create controversy rather than resolve issues, and that responding drains resources. He did not provide additional documentation or a timeline beyond the original statement.
Community and treasury debate
The Cardano community is actively debating treasury, governance, and engagement. The Cardano Foundation's budget is under scrutiny, with only a third of proposals approved. That pressure contributed to the cancellation of the 2026 Cardano Singapore Summit after a $7.8 million ADA treasury request was rejected. The audit payment revelation adds another layer to the ongoing tension over how early funds were managed.
No further details have been released by Hoskinson or IOHK. The question of whether the full BTC transaction trail will be made public remains open.
