The Cardano ecosystem has been rocked by a series of allegations that paint a picture of internal dissension, strategic manipulation, and the erosion of trust in its foundational organizations. An anonymous email, shared by prominent community member “Big Pey” (@bigpeyYT) on X, claims to reveal the inner workings of the Cardano Foundation (CF) and its strong ties to Input Output Global (IOG), EMURGO, and member . -based organization Intersect.
Cardano Whistleblower Allegations
The whistleblower, who identifies as a long-time participant in the Cardano ecosystem—since the Incentivized Testnet (ITN) era and as a former stake pool worker—asserts that his experience includes a lot of time within the CF internal environment. He describes direct communication with senior CF figures and recent involvement with Intersect working groups and committees.
“It is painfully clear that the latest CF explosion is part of a larger strategic game – an attempt to undermine Charles, IOG, Intersect, and the wider road to governance,” the publisher wrote, suggesting a carefully planned effort to shape Cardano’s future to embrace the community-driven spirit the network aims to champion.
With a more specific accusation, the consultant asserts: “The reduced self-esteem at the top level is damaging the strategy, and if their plan succeeds, it will make Cardano go down a little.” He describes the CF’s “failing leadership” which appears to be motivated by personal rivalries and a desire to reduce the influence of the IOG and Charles Hoskinson rather than serving the public good.
The memo describes a long-standing dispute between CF and IOG, a research and development company led by Cardano founder Charles Hoskinson. According to the report, the CF opposition situation has intensified in recent months.
They recall an incident in September—IOG reportedly cut internal communications after CF attempted to hack into key IOG engineers. The whistleblower also refers to the dispute over the location of the Cardano Summit and funding: the CF insisted on Dubai for the second year in a row, allegedly ignoring Argentina, and demanded large sums of money from the IOG despite holding hundreds of millions of ADA.
“From what I have personally seen, the real problem lies in CF’s incompetence and their sense of entitlement—they believe that they, not the IOG, should set Cardano’s course,” the investigator said.
While admitting shortcomings elsewhere—IOG delays and management problems, EMURGO’s historical neglect of commitments, and early management outbursts within Intersect—the publisher posits CF’s actions as the most pressing threat. “Compared to CF malfunctions, the IOG, EMURGO, and Intersect faults appear small,” he writes.
Central to that report’s concerns are CF’s late engagements and alleged attempts to undermine Cardano’s corporate governance framework, including CIP-1694 and the drafting of the Cardano Constitution. The whistleblower notes that CIP-1694, which was published in November 2022, was written mainly by IOG contributors. Although the representative of the CF, Matthias Benkort, is listed as a contributor, the memo says that his role was a major one: “This is very clear when Matthias tweeted on August 11—months after the publication of CIP-1694—showing limited understanding .”
Regarding the creation of Intersect—a member-based organization to promote decentralized governance—the publisher says that while the IOG and EMURGO supported its creation, the CF hesitated and joined after it became inevitable. “Intersect is seed-funded by IOG and EMURGO; the CF refused,” he notes, adding that the CF leadership only gives excuses rather than taking constructive steps. Eventually, CF joined the Intersect as a member of the Enterprise, but the announcer says this was due to fear of abandonment.
The most prominent governance allegations concern the CF’s sudden intervention in the constitution-writing process. On November 21, 2024, the CF issued a “revised proposal for the Cardano Constitution” just one day after Intersect published the latest version based on months of community engagement and previous drafts. According to the report, CF’s proposal was based on a publicly available Intersect study from July 29, however it appeared at the eleventh hour. “It was classic CF: wait until the train leaves, then try to get a small credit or maybe lose it,” the presenter wrote.
They went on to say that the main leader of the CF administration, Nicolas Cerny, contributed to the Intersect group writing internally for months and even signed the constitution approved by the delegates in Buenos Aires, however the CF leadership kept this agreement under wraps. “Instead of building on his work internally, CF undermined him on the ropes,” said the presenter, citing what they saw as a pattern of strategic blocking.
The whistleblower memo also sheds light on CF’s recent move to Cardano’s new crowdfunding platform, Catalyst. In November, CF was registered as a Delegated Representative (DRep), and soon after, it spent 180 million ADA on Fund13, effectively shaping which projects receive grants. The presenter warns that the CF’s initial no-vote is merely a stopgap, designed to set a precedent for future governance votes.
“Don’t believe that ‘it’s up to us’ and ‘the public is at fault’ to tell the story,” the memo urges, suggesting that CF leadership intends to use its massive ADA funds as a way to counter the effects of a regime it disapproves of.
The speaker challenges the CF leadership directly on this issue: “Will you transfer the 180m ADA spent on Fund13 (whatever your genesis ADA) to your DRep in the next 6 months? Do you vote yes, no, or abstain from the constitution approved in Buenos Aires? Just tell us the truth.”
According to the memo, rather than promoting a decentralized environment, CF’s approach to Catalyst sets a dangerous precedent. “A truly civil society could use part of that ADA to support eligible projects without distorting the entire vote,” argued the investigator.
Answer by Charles Hoskinson
Faced with these revelations, Cardano founder Charles Hoskinson addressed the advisor’s claims about X. “It’s been a long and difficult road, but I agree with some of the investigator’s sentiments,” he wrote, acknowledging the difficult interpersonal and strategic aspects. challenges in play. “I don’t know if the CF will vote against the public constitution or the budget. It’s been incredibly frustrating, and yes, Intersect should have been CF. “
Hoskinson also highlighted CF’s opaque decision-making structure: “Board members are not elected or appointed by the public. No one can influence or prevent their decisions and policies. And it seems that there is a lot of dislike for me personally in the organization.”
At press time, ADA traded at $1.16.
Featured image from YouTube, chart from TradingView.com
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