The NEO project's treasury, valued at hundreds of millions of dollars in crypto assets, has been controlled through personal wallets with no multi-sig protections and little formal oversight. According to co-founder Da Hongfei, Erik Zhang, the project's other co-founder, holds around 85% of the assets, worth between $200 million and $250 million, with single signature control. Da has proposed a restructuring plan, which includes redomiciling the Neo Foundation to the Cayman Islands, replacing the current governance with an independent five-member board, and redistributing tokens to holders.
In contrast, Zhang's counter-proposal calls for a formal investigation into historical asset management and seeks to maintain his role on the board. The dispute has led to a stalemate, with Da framing his proposal as a form of mutual disarmament, where both he and Zhang would sacrifice individual control over assets. However, the success of the plan depends on Zhang's cooperation, which remains uncertain.