Hoskinson unveils zero-knowledge wallet recovery for Cardano

Charles Hoskinson is testing a Cardano smart contract using zero-knowledge proofs for wallet recovery, letting users reclaim assets without exposing recovery phrases. The system aims to boost security and privacy.

Charles Hoskinson has introduced and begun testing an experimental smart contract system for Cardano that allows users to recover lost self-custody wallets without exposing their 24-word recovery phrases. This innovative solution leverages zero-knowledge proofs, enabling users to cryptographically prove wallet ownership and reclaim ADA and Cardano Native Tokens (CNTs) from a dedicated recovery pool, all while keeping sensitive credentials private. The process eliminates the need for third-party intermediaries, relying solely on smart contracts and the blockchain as the trusted custodian. Hoskinson shared the concept on June 26, 2026, highlighting ongoing collaboration with Quantumplation, Sebastien Guillemot, and the Midnight team. He emphasized that the system remains in the testing phase. This initiative aims to enhance wallet security, support ethical recovery efforts, and make self-custody safer and more accessible for Cardano users. Separately, Hoskinson noted that the identity of a presumed white hat hacker who moved 129 million ADA after a wallet exploit is still unknown, with asset recovery efforts ongoing but not guaranteed.