A Single Individual Controls $200 Million in Crypto for a Project, Prompting Calls for Change

The unusual setup of a project's treasury, where hundreds of millions of dollars in crypto assets are controlled by personal wallets with no multi-signature protections and little formal oversight, has been a point of contention for years. According to co-founder Da Hongfei, his fellow co-founder Erik Zhang is the individual who holds around 85% of the project's assets, worth between $200 million and $250 million, with single signature control. This amount surpasses the project's current market capitalization of $197 million. The native tokens held by Zhang have not been transferred to any individual or multi-signature wallet. The two co-founders have been publicly airing their disputes since December, resulting in rival governance plans and an unsuccessful mediation attempt in Hong Kong. Da has proposed a restructuring plan that involves redomiciling the project's foundation from Singapore to the Cayman Islands, establishing an independent five-member board, and redistributing tokens to holders. In contrast, Zhang's proposal includes staying on the board, keeping the foundation in Singapore, and conducting a formal investigation into historical asset management to address potential corruption and improper asset transfers. Da has dismissed these accusations, stating there is no corruption or misuse of funds. Observers note that the project's treasury holds approximately $460 million in assets, double its market value, while the token has dropped 98% from its peak in 2018. The treasury is split between two halves, with the native tokens controlled by Zhang and the non-token assets managed by NGD, the entity run by Da. Da frames his proposal as a form of mutual disarmament, where both he and Zhang would sacrifice individual control over assets. However, the success of this proposal depends on Zhang's cooperation, and Da is unsure if Zhang is willing to cooperate. If Zhang refuses, Da believes the community should decide the next course of action.