The NEO project's treasury, valued at hundreds of millions of dollars in crypto assets, has been controlled through personal wallets with little oversight. According to Da Hongfei, co-founder Erik Zhang holds around 85% of the assets, worth between $200 million and $250 million, with single-signature control.
Hongfei 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 founders has led to a stalemate, with each holding significant leverage over the other. Da Hongfei has framed his proposal as a form of mutual disarmament, where both he and Zhang would relinquish individual control over assets. However, the success of this plan relies on Zhang's cooperation, which remains uncertain.