Technology

‘Cardano has nothing to hide’, says Charles Hoskinson after the controversy surrounding the company linked to its rival Ethereum

Closing out a troubled week for ConsenSys, the main software provider and maintainer of the operational infrastructure of the Ethereum (ETH) network, Cardano (ADA) leader and CEO Charles Hoskinson questioned the degree of decentralization of the network in a post. from Twitter posted on Friday.

Just want to point out that JP Morgan does not own any critical Cardano Infrastructure https://t.co/SrEyVRehop

— Charles Hoskinson (@IOHK_Charles) March 4, 2022

I just want to point out that JP Morgan does not own any critical Cardano infrastructure.

The Cardano founder’s post referenced news published last Thursday that a group claiming to represent 35 former employees of ConsenSys AG (CAG) has requested an audit under the Swiss Code of Obligations to investigate “serious irregularities.” that allegedly occurred in August 2020 and implicate the company responsible for MetaMask, the most popular digital wallet used to access and transact on the Ethereum network.

According to the petition, the former employees allege that “core and subsidiary intellectual property was illegally transferred” from ConsenSys AG (referred to as CAG) to a new entity called “ConsenSys Software Incorporated” (CSI) on August 14, 2020. Both companies would have Joseph Lubin as their main shareholder, who is also one of the co-founders of Ethereum, and the denounced transfer would have harmed minority shareholders.

The audit request states that the intellectual properties were transferred to “ConsenSys Software Incorporated (CSI), in exchange for 10% ownership and $39 million loan compensation from founder Joseph Lubin.” The group alleges that several items were underestimated during the process.

The operation would also have involved the acquisition of a 10% stake in ConsenSys by the investment bank JP Morgan Chase, a fact that Hoskinson referred to in his post. Indirectly, both the Ethereum network, whose operational infrastructure depends on Infura, another company linked to ConsenSys, and the digital wallet MetaMask would see their decentralization compromised as a result of this agreement, the Cardano founder hinted.

The same day that the news of the audit request came to light, an episode of blocking Venezuelan users of MetaMask clouded the supposed decentralization of the digital wallet.even though ConsenSys blamed the problem on an accidental reconfiguration of updates that ended up being “more extensive than necessary” to comply with “new guidelines regarding sanctions imposed by the US and other jurisdictions.”

In other words, the companies attributed the blockade to the need to comply with legal requirements arising from the sanctions imposed by Western powers on Russia for the Ukraine war, as Cointelegraph reported at the time.

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