Cardano Foundation regains social media control amid governance turmoil

The Cardano Foundation (CF) has regained control of its official X account after it was compromised in a hacking incident.

The breach, which occurred on Dec. 8, saw the account misused to promote a fraudulent ADASOL token. The attackers also spread fabricated claims about the Foundation, claiming the organization faced legal action from the US Securities and Exchange Commission (SEC).

In a Dec. 13 statement, the Foundation assured the community that those social media posts were entirely baseless and did not represent its position. It also confirmed that the organizations internal systems were unaffected and that an investigation was underway to uncover how the breach occurred.

The incident comes amid rising tensions and governance disputes within the Cardano ecosystem.

Whistleblower allegations

On Dec. 11, a prominent Cardano community member BigPey shared an anonymous whistleblower email outlining internal challenges within the Foundation.

The mail accused the Foundation of power struggles, attempts to marginalize key ecosystem contributors like Cardanos founder Charles Hoskinson, and a lack of meaningful involvement in decentralized governance initiatives.

One key accusation involved Catalyst Fund13, a program used to set ecosystem priorities. The Foundation reportedly registered as a Delegated Representative (DRep), wielding 180 million ADA in voting power. Critics expressed concern over the potential misuse of this influence to override community interests.

Another point of contention was the Foundations engagement with CIP-1694, a critical proposal for on-chain governance, and its minimal contribution to drafting the Cardano Constitution. The Foundations participation in these initiatives increased only after others had made substantial progress.

The email also highlighted disputes over the Cardano Summit, accusing the Foundation of prioritizing its preferred location in Dubai while sidelining other options like Argentina. This, coupled with demands for significant funding despite holding large ADA reserves, has fueled concerns about transparency and inclusivity in decision-making.

Hoskinsons reaction

Hoskinson addressed these concerns in a social media post, acknowledging the ecosystems challenges. While noting progress in some areas, he criticized the Foundations opaque decision-making processes.

He stated:

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. You can not hide things forever in a decentralized ecosystem. Everything comes out.

Hoskinson pointed out that the Foundations board operates independently, with no accountability to the broader community, and expressed frustration over its resistance to collaborative efforts like the Intersect initiative for governance.

The post Cardano Foundation regains social media control amid governance turmoil appeared first on CryptoSlate.

Text source: CryptoSlate

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