The Cardano ecosystem has been rocked by a series of whistleblower allegations that paint a picture of internal discord, strategic manipulation, and eroding trust at the very heart of its foundational organizations. An anonymous email, shared by prominent community member “Big Pey” (@bigpeyYT) on X, claims to expose the inner workings of the Cardano Foundation (CF) and its tense relationships with Input Output Global (IOG), EMURGO, and the member-based organization Intersect.
The Allegations Of The Cardano Whistleblower
The whistleblower, who identifies as a long-standing participant in the Cardano ecosystem—from the Incentivized Testnet (ITN) era and as a former stake pool operator—asserts that their experience includes substantial time within the CF’s internal environment. He describes direct interactions with senior CF figures and recent involvement with Intersect’s working groups and committees.
“It’s painfully clear that the CF’s recent burst of activity is part of a larger strategic play—an attempt to undermine Charles, IOG, Intersect, and the broader governance roadmap,” the whistleblower writes, suggesting a carefully orchestrated effort to shape Cardano’s future without embracing the community-driven spirit that the network purports to champion.
In an even more direct condemnation, the whistleblower asserts: “Deflated egos at the senior level are poisoning the strategy, and if their plan succeeds, it will steer Cardano into a slow decline.” He describes CF’s “failing leadership” that is seemingly motivated by personal rivalries and a desire to diminish IOG’s and Charles Hoskinson’s influence rather than serving the community’s best interests.
The memo details the long-simmering tensions between the CF and IOG, the research and development company led by Cardano founder Charles Hoskinson. According to the whistleblower, the CF’s adversarial stance intensified in recent months.
They recall an incident in September—IOG reportedly severed internal communications after the CF attempted to poach key IOG engineers. The whistleblower also alludes to a dispute over the Cardano Summit location and funding: the CF insisted on Dubai for a second consecutive year, allegedly ignoring Argentina, and demanded large sums from IOG despite holding hundreds of millions of ADA.
“From what I’ve seen firsthand, the real issue lies in the CF’s overall incompetence and their sense of entitlement—believing that they, not IOG, should set Cardano’s course,” the whistleblower states.
While acknowledging shortcomings elsewhere—IOG’s delays and management issues, EMURGO’s historical neglect of responsibilities, and early bureaucratic creep within Intersect—the whistleblower frames the CF’s actions as the most pressing threat. “Compared to the CF’s dysfunction, IOG’s, EMURGO’s, and Intersect’s flaws seem minor,” he writes.
Central to the whistleblower’s concerns is the CF’s late-stage engagement and alleged attempts to undermine Cardano’s on-chain governance framework, including CIP-1694 and the drafting of the Cardano Constitution. The whistleblower notes that CIP-1694, published in November 2022, was primarily authored by IOG contributors. Although a CF representative, Matthias Benkort, is listed among contributors, the memo claims his role was largely peripheral: “This became crystal clear when Matthias tweeted on August 11th—months after CIP-1694’s publication—displaying limited understanding.”
Regarding the creation of Intersect—a member-based organization to facilitate decentralized governance—the whistleblower states that while IOG and EMURGO supported its formation, the CF hesitated and only joined after it became unavoidable. “IOG and EMURGO seed-funded Intersect; the CF refused,” he notes, adding that the CF leadership provided only excuses rather than taking constructive steps. Eventually, the CF joined Intersect as an Enterprise member, but the whistleblower attributes this to fear of being left behind.
The most striking governance-related accusation concerns the CF’s sudden intervention in the constitutional drafting process. On November 21, 2024, the CF released its own “updated proposal for the Cardano Constitution” just one day after Intersect published the latest version derived from months of community engagement and previous drafts. According to the whistleblower, the CF’s proposal was derived from a publicly available Intersect draft from July 29, yet only surfaced at the eleventh hour. “It was classic CF: waiting until the train moved, then trying to claim partial credit or more likely derail it,” the whistleblower writes.
They further claim that a key CF governance lead, Nicolas Cerny, contributed to Intersect’s internal drafting team for months and even signed the delegate-approved constitution in Buenos Aires, yet the CF’s leadership kept this alignment under wraps. “Instead of building on his work from within, the CF undermined him at the finish line,” states the whistleblower, citing what they see as a pattern of strategic obstructionism.
The whistleblower’s memo also sheds light on the CF’s recent move in Cardano’s innovation funding platform, Catalyst. In November, the CF registered as a Delegated Representative (DRep), and shortly thereafter, it wielded 180 million ADA in Fund13, effectively shaping which projects received grants. The whistleblower warns that the CF’s purported initial abstention is merely posturing, designed to set a precedent for future governance votes.
“Don’t believe the ‘it’s on us’ and that ‘it’s the community who are at fault’ narrative,” the memo urges, suggesting that the CF’s leadership intends to use its large ADA holdings as leverage against governance outcomes it disapproves of.
The whistleblower challenges CF leadership directly on this matter: “Will you delegate the 180m ADA used in Fund13 (or any of your genesis ADA) to your DRep in the next 6 months? Are you voting yes, no, or abstain on the constitution approved in Buenos Aires? Just tell us the truth.”
According to the memo, rather than fostering a decentralized environment, the CF’s approach to Catalyst sets a dangerous precedent. “A genuinely community-aligned Foundation might have used a fraction of that ADA to support deserving projects without skewing the entire vote,” the whistleblower contends.
Charles Hoskinson’s Response
In the face of these revelations, Cardano founder Charles Hoskinson addressed the whistleblower’s claims via X. “It’s been a long and difficult road, but I do agree with some of the sentiments of the whistleblower,” he writes, acknowledging the difficult interpersonal and strategic challenges at play. “I honestly have no idea if the CF will vote against the community constitution or budget. It has been extraordinarily frustrating, and yes, Intersect should have been the CF.”
Hoskinson also highlighted the CF’s opaque decision-making structure: “The board members are not community elected or appointed. No one can influence or veto their decisions and policies. And there does seem to be a strong dislike of me personally in the organization.”
At press time, ADA traded at $1.16.
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