The NEO project's treasury, worth hundreds of millions of dollars in crypto assets, has been controlled through personal wallets with no multi-signature protections and little oversight. Co-founder Da Hongfei claims that Erik Zhang, the project's other co-founder, holds around 85% of the treasury, valued between $200 million and $250 million, with single-signature control. Da has proposed a restructuring plan, which includes relocating 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 been ongoing since December, with both parties airing their grievances publicly. Da's proposal aims to introduce mutual disarmament, where both he and Zhang would relinquish control over the assets, but its success depends on Zhang's cooperation.
If Zhang refuses, Da believes the community should decide the next course of action.