The treasury of NEO, a cryptocurrency 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 Da Hongfei, co-founder of NEO, Erik Zhang, the project's other co-founder, holds around 85% of the assets, worth between $200 million and $250 million, with single signature control. This has led to a dispute between the two founders, with Da proposing a restructuring plan that includes redomiciling the Neo Foundation to the Cayman Islands, replacing the current governance with an independent board, and redistributing tokens to holders. Zhang has countered with a proposal that includes an investigation into historical asset management and a provision to address potential corruption.
The situation has resulted in a stalemate, with each founder holding leverage over the other, and the community is left to decide the project's future.