Co-Founder Holds Keys to $200 Million in Crypto, Sparking Governance Debate

The treasury of the NEO project has been managed in an unconventional manner, with hundreds of millions of dollars in crypto assets controlled through personal wallets, lacking multisig protections and formal oversight. According to co-founder Da Hongfei, Erik Zhang, the project's other co-founder, has sole control over approximately 85% of the assets, valued between $200 million and $250 million. Da has proposed a restructuring plan, which includes transferring the Neo Foundation from Singapore to the Cayman Islands, establishing an independent five-member board, and redistributing tokens to holders. In contrast, Zhang's counter-proposal involves staying on the board, keeping the Foundation in Singapore, and conducting a formal investigation into historical asset management. The dispute between the co-founders has been ongoing since December, with each side presenting rival governance plans and an unsuccessful mediation effort in Hong Kong. The situation has resulted in a stalemate, with the treasury split almost evenly between the two co-founders, each holding significant leverage over the other. Da has framed his proposal as a 'mutual disarmament,' where both he and Zhang would relinquish individual control over assets, but the outcome depends on Zhang's cooperation. If Zhang refuses, the community may need to intervene to determine the project's future.