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

The treasury of a major cryptocurrency project has been managed in an unconventional manner, with hundreds of millions of dollars in crypto assets controlled by personal wallets lacking multi-signature protections and 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 core protocol architect. Da estimates that Zhang alone controls around 85% of the project's assets with a single signature, valued between $200 million and $250 million. This amount exceeds the project's current market capitalization of $197 million. The two co-founders have been publicly disputing since December, resulting in rival governance plans and an unsuccessful mediation effort. Da's proposal, published on GitHub, suggests redomiciling the project's foundation to the Cayman Islands, replacing the current governance structure with an independent five-member board, and redistributing tokens to holders. In contrast, Zhang's counter-proposal involves staying on the board and keeping the foundation in Singapore, with a call for a formal investigation into historical asset management. Da has dismissed these accusations, stating there has been no corruption or misuse of funds. Observers have noted that the project's treasury holds approximately $460 million in assets, double its market value, while the token has dropped significantly from its peak. The situation has resulted in a stalemate, with each co-founder holding leverage over the other. Da views 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, and Da has stated that if Zhang refuses, the community should decide the next course of action.