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

For years, the crypto project's treasury was managed in an unconventional manner, with hundreds of millions of dollars in digital assets controlled by personal wallets, lacking multi-signature safeguards and formal oversight. According to co-founder Da Hongfei, his fellow co-founder Erik Zhang holds the keys to around 85% of the project's assets, valued between $200 million and $250 million, with single-signature control. The native tokens held by Zhang exceed the project's current market capitalization of $197 million. The two co-founders have been engaged in a public dispute since December, resulting in rival governance proposals and an unsuccessful mediation attempt in Hong Kong. Da has proposed a restructuring plan, which involves relocating the project's foundation to the Cayman Islands, establishing an independent five-member board, and redistributing tokens to holders. In contrast, Zhang's counter-proposal suggests maintaining the current governance structure and conducting a formal investigation into historical asset management. Da has dismissed Zhang's accusations of corruption and mismanagement, stating that there is no evidence to support these claims. 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 co-founders' dispute has resulted in a stalemate, with each holding significant control over the project's assets. Da has framed his proposal as a mutual disarmament, where both co-founders would relinquish their individual control over the assets. However, the success of this proposal depends on Zhang's cooperation, which remains uncertain.