Cardano (ADA) founder Charles Hoskinson rejected fresh claims that the government could order him to censor or seize users’ tokens on the blockchain. In a post on X on July 3, Hoskinson responded to a Bitcoin supporter who said governments could force him to block or confiscate ADA through a hidden backdoor.
The debate began when a user claimed that if someone refused to give up their keys, the government could pressure Hoskinson or Cardano’s core team to freeze or take their coins. The comment repeated a long-standing claim by Bitcoin-only supporters that most altcoins depend too much on founders or central teams and lack Bitcoin’s strict self-custody model.
Bitcoin’s design lets users store BTC in wallets only they control. The network is secured by miners and nodes spread worldwide, making direct seizure difficult without private keys. Bitcoin promoters often use this difference to argue that BTC is the only true censorship-resistant money.
Chang Upgrade Burned Genesis Keys
Hoskinson countered that Cardano’s network design does not allow such control. Last year, Cardano completed the Chang upgrade, which moved the blockchain into its “Voltaire” era. In this phase, governance shifted fully to stake pool operators and delegated representatives, also known as dReps.
As part of the transition, Hoskinson and other major stakeholders destroyed the genesis keys — special keys used in the blockchain’s early development to manage upgrades or fix critical bugs. By removing these keys, Cardano’s core team gave up direct control over the main chain.
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No Backdoor in Midnight, Says Cardano’s Hoskinson
The latest censorship claim also revived rumors about Midnight — Cardano’s upcoming sidechain focused on privacy. Some speculate that law enforcement could use Midnight’s compliance features to force the seizure of user funds.
Hoskinson has said Midnight does allow law enforcement to request data through legal channels. However, the feature only supports selective disclosure of information — not asset confiscation. He stressed that there is no hidden switch that lets any central party seize ADA.
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This is not the first time Hoskinson has defended Cardano’s decentralization. Over the years, critics have said the project relies too much on Input Output Global (IOG), the research company he leads. They point to delays in upgrades and tight control of core development as signs that Cardano remains centralized compared to Bitcoin.
In response, Hoskinson has pushed for more open governance. He recently proposed a $100 million DeFi stimulus to boost Cardano’s decentralized finance ecosystem. That move drew mixed reactions. Some said it would help build liquidity, while others warned a large token sale could push down ADA’s price.
At the time of writing, The ADA price stands at $0.58, far below its all-time high of $3.10 reached in September 2021. Despite the decline, Cardano stays in the top 10 cryptocurrencies by market capitalization.
