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

The NEO project's treasury has been controlled by a single individual, co-founder Erik Zhang, with hundreds of millions of dollars in crypto assets held in personal wallets without multisig protections or formal oversight. According to co-founder Da Hongfei, Zhang controls around 85% of the project's assets with a single signature, valued at between $200 million and $250 million. Da has proposed a restructuring plan that includes redomiciling the Neo Foundation 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 sparked a debate about governance and the need for mutual disarmament, with Da framing his proposal as a way for both parties to sacrifice individual control over assets and establish a more robust governance structure.