Co-founder Holds Keys to $200 Million in Crypto, Sparking Governance Dispute

The control of hundreds of millions of dollars in crypto assets has been a point of contention for the NEO project, with co-founder Erik Zhang holding significant sway over the treasury. According to Da Hongfei, the other co-founder, Zhang has single-handed control over around 85% of the project's assets, valued at between $200 million and $250 million. Da has proposed a restructuring plan, which includes the establishment of an independent five-member board and the redistribution of tokens to holders, in an effort to address the current governance issues. However, Zhang has countered with his own proposal, calling for an investigation into historical asset management and the potential for corruption. The dispute between the two co-founders has been ongoing since December and has resulted in rival governance plans and an unsuccessful mediation attempt. The situation has sparked concerns among observers, with the project's treasury holding approximately $460 million in assets, double its current market value, while the token has experienced a significant decline in value since its 2018 peak. Da has framed his proposal as a form of mutual disarmament, where both he and Zhang would relinquish control over the assets, but the success of the plan relies on Zhang's cooperation. If Zhang refuses to transfer the single-signature token holdings to a multisig lock address, the community may need to intervene to determine the project's future.