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

The NEO project's treasury, worth hundreds of millions of dollars in crypto assets, has been controlled by a single individual, Erik Zhang, with no multisig protection or formal oversight. This unusual setup has sparked a heated debate between Zhang and co-founder Da Hongfei, who is calling for a more transparent and secure governance structure. Da's proposal, published on GitHub, includes relocating the Neo Foundation to the Cayman Islands, establishing an independent five-member board, and redistributing tokens to holders. Zhang, on the other hand, has proposed staying on the board, keeping the Foundation in Singapore, and conducting a formal investigation into historical asset management. The two co-founders have been airing their disputes publicly since December, with Da dismissing Zhang's accusations of corruption and misuse of funds as 'empty' and 'blunt'. The NEO treasury holds approximately $460 million in assets, double the project's market value, with the token having dropped 98% from its 2018 peak. Da has framed his proposal as a form of 'mutual disarmament', where both he and Zhang would sacrifice individual control over assets. However, the success of this plan depends on Zhang's cooperation, which is uncertain. If Zhang refuses to transfer the single-signature token holdings to a multisig lock address, the community may need to take action.