A major controversy has rocked the Cardano ecosystem following reports that Optim Finance launched a smear campaign against Cardano and its founder, Charles Hoskinson.
In a series of X posts, Hoskinson claimed that the popular decentralized finance protocol misused about eight figures of customers’ ADA tokens in a slanderous effort against the broader Cardano ecosystem.
$600M Misappropriation Claim
Part of this smear campaign links to an earlier claim that over $600 million worth of ADA had been stolen from the Cardano network. As previously reported, NFT artist Masator Alexander made this allegation earlier this month.
Alexander suggested that Hoskinson inserted a hidden code into Cardano’s Allegra hard fork in 2021, diverting roughly 318 million ADA (worth $619 million at the time) from unclaimed ICO funds.
This allegation stirred a major controversy within the Cardano community, prompting Hoskinson to announce an audit to clarify the matter.
Optim Finance Revealed as Sponsor of $600M Misappropriation Claim
Less than two weeks after this allegation, Optim Finance was revealed as a major sponsor of the smear campaign. According to Hoskinson, the baseless tale of a $600 million theft was fueled by a group linked to a delegated representative (DRep) funded by Optim Finance.
In addition to the $600 million ADA misuse claim, Hoskinson revealed that Optim Finance was involved in other smear campaigns targeting the broader Cardano ecosystem.
He claimed that the DeFi project pushed these defamatory narratives to media outlets and influencers to damage Cardano’s reputation.
“They repeatedly lied about $600 million being stolen. They went out of their way to attempt to spread this message to every influencer possible and media agencies,” Hoskinson remarked.
Hoskinson Cuts Ties with Optim Finance
Meanwhile, he added that Optim Finance has failed to show genuine remorse for its actions after it was caught and called out. Instead, the project ‘blamed everyone,’ according to Hoskinson.
Following the controversy, Hoskinson noted he is cutting ties with Optim Finance, withdrawing his stake from the platform, and encouraging other Cardano enthusiasts to do the same. Some Cardano enthusiasts followed suit, announcing they would no longer back Optim Finance.
In parallel, Hoskinson announced plans to back every major competitor of Optim Finance, including Indigo. He claimed his support for these projects would make them more competitive.
Any optim competitor is a friend of mine
— Charles Hoskinson (@IOHK_Charles) May 29, 2025
Optim Finance Token Dips 23.7% in 24 Hours
Meanwhile, the price of Optim Finance’s native token (O) experienced a massive dip over the past 48 hours. The token, which had traded around $0.3 earlier this week, fell to a price of $0.22.
With O currently trading at $0.2203, it has plunged by 23.7% in the past day.
Optim Finance Responds
Interestingly, Optim Finance issued a statement acknowledging its mistake of selecting a politically charged DRep. However, it announced its commitment to move forward and also continue to roll out great products.
We made a mistake in not having the DAO choose delegation and choosing a politically charged dRep.
We will move forward.
We will continue to ship great products.
We will rise above the noise, focus on building, and deliver far beyond people’s expectations 🛠️ 🚀
— Optim Finance (@OptimFi) May 29, 2025
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