The Cardano Ecosystem Rocked by a Series of Whistleblower Allegations

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.

A whistleblower within the Cardano (ADA) ecosystem has shared their perspective on the internal dynamics and governance challenges plaguing the network. The whistleblower, who claims to have been involved in the Incentivized Testnet (ITN) era and as a former stake pool operator, alleges that their experience includes substantial time within the Cardano Foundation’s (CF) internal environment. They describe direct interactions with senior CF figures and recent involvement with Intersect’s working groups and committees.

In an email shared by prominent community member “Big Pey” (@bigpeyYT) on X, the whistleblower asserts 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. They suggest a carefully orchestrated effort to shape Cardano’s future without embracing the community-driven spirit that the network purports to champion.

The whistleblower goes on to describe deflated egos at the senior level that are poisoning the strategy, and if their plan succeeds, it will steer Cardano into a slow decline. They allege failing leadership at the CF that is 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 Input Output Global (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 when 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