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

For years, the NEO project's treasury has been managed in an unconventional manner, with hundreds of millions of dollars in crypto assets controlled by personal wallets and lacking 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 architect of its core protocol. Da estimates that Zhang holds between $200 million and $250 million worth of NEO and GAS tokens, exceeding the project's current market capitalization of $197 million. The two co-founders have been embroiled in a public dispute since December, with Da proposing a restructuring plan that includes redomiciling 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. 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 situation has resulted in a stalemate, with each co-founder holding leverage over the other and neither willing to concede. 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 plan depends on Zhang's cooperation, which remains uncertain.