Charles Hoskinson Clarifies Midnight’s Privacy After Seizure Allegations

Charles Hoskinson, the founder of Cardano, has denied recent claims suggesting that the government can seize tokens on Cardano through him. He reacted to the allegation on X (formerly Twitter) after a user claimed Hoskinson could freeze or censor assets on Cardano if ordered by the government. The Cardano founder directly asked how such a seizure would even be possible. “I’ll wait,” he said, challenging the user to explain. His reply came as the debate between Bitcoin maximalists and altcoin supporters intensified online.

Bitcoin Maximalists Ignore Cardano’s Full Decentralization

The user’s comment, which sparked Hoskinson’s reaction, ignored a critical update to Cardano’s network. In September, Cardano implemented the Chang upgrade and entered the Voltaire era. This marked its transition to complete decentralization, placing governance power in the hands of all ADA holders.

Cardano stake pool operators (SPOs) and delegated representatives (dReps) now manage the network’s future direction. Furthermore, Hoskinson and other early network contributors destroyed their genesis keys, removing any privileged access to the blockchain. Hoskinson expressed his disbelief that anyone familiar with blockchain could still push such claims. This is not the first time he has addressed these misconceptions. In March, he acknowledged that it may take years and significant media attention for the public to fully grasp Cardano’s decentralization.

Debate Stems From RWA Tokenization Discussion

The broader debate began after Robinhood CEO Vlad Tenev promoted real-world asset (RWA) tokenization as the next frontier, beyond Bitcoin and meme coins. Robinhood recently launched a protocol enabling European users to trade U.S. stocks directly.

A Bitcoin advocate, Breeadman, shared Tenev’s remarks, prompting debate. Some argued that if RWA tokenization gains traction, Bitcoin could become obsolete. Others claimed that only Bitcoin, due to self-custody, protects users from asset seizures.

No Backdoor in Midnight Sidechain

As discussions extended to other blockchains, some accused altcoin founders of maintaining backdoors for government intervention. In response, Hoskinson also clarified details about Midnight, Cardano’s upcoming privacy-focused sidechain.

Despite speculation, Midnight will not allow authorities to freeze assets. It will only provide selective data disclosure, and that too under legal processes. Law enforcement cannot confiscate tokens; they can only request specific information through due procedure. Hoskinson reaffirmed that Cardano’s decentralized design prevents any centralized control or government interference. He also emphasized that both Cardano and its sidechain Midnight respect user ownership and privacy.

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