A $200 Million Crypto Project's Fate Hangs in the Balance as Co-Founders Clash

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 without multi-signature protections or formal oversight. According to co-founder Da Hongfei, the individual in control of these assets is Erik Zhang, the project's other co-founder and core protocol architect. Da estimates that Zhang alone controls around 85% of the assets, worth between $200 million and $250 million, with no multi-signature protections in place. The native NEO and GAS tokens held by Zhang are valued at more than the project's current market capitalization of $197 million. Zhang has countered with accusations of his own, and the two co-founders have been publicly airing their disputes since December. The conflict has led to rival governance plans, with Da proposing the establishment of an independent five-member board, the redistribution of tokens to holders, and the relocation of the Neo Foundation from Singapore to the Cayman Islands. In contrast, Zhang's proposal involves remaining on the board, keeping the foundation in Singapore, and conducting a formal investigation into historical asset management to address potential corruption and improper asset transfers. Da has dismissed these accusations, stating that there is no corruption or misuse of funds. The project's treasury holds approximately $460 million in assets, roughly double its market value, with the token having dropped 98% from its 2018 peak. The treasury is split between two halves, with the native NEO and GAS tokens under Zhang's control and the non-token assets, including bitcoin, ether, and stablecoins, managed by NGD, the entity run by Da. 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 proposal depends on Zhang's cooperation, and Da has stated that if Zhang refuses, the community should decide the next course of action.