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

For years, the NEO project's treasury has been managed through an unconventional setup, with hundreds of millions of dollars in crypto assets controlled by personal wallets and lacking multisig protections. According to co-founder Da Hongfei, Erik Zhang, the project's other co-founder, holds around 85% of the treasury, valued at between $200 million and $250 million, with single-signature control. This has raised concerns about the lack of formal oversight and the concentration of power. Da has proposed a restructuring plan, which 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 suggests 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 both sides airing their grievances publicly. The situation has led to a stalemate, with the project's treasury split between two individuals who are no longer communicating effectively, each holding leverage over the other. Da has framed his proposal as a form of mutual disarmament, where both he and Zhang would relinquish control over the assets. However, the success of this plan relies on Zhang's cooperation, which is uncertain. The community is left to ponder the next steps, with the project's future hanging in the balance.