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

The NEO treasury, valued at hundreds of millions of dollars, has been managed through personal wallets with little oversight, sparking concerns over governance and control. Co-founder Da Hongfei estimates that approximately 85% of the treasury is controlled by Erik Zhang, the other co-founder, with a single signature, and no multi-sig protections. The native NEO and GAS tokens held by Zhang are currently worth between $200 million and $250 million. Da has proposed a restructuring plan, which 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 and maintaining the Foundation's current location in Singapore. Zhang also calls for an investigation into historical asset management, citing concerns over potential corruption and improper asset transfers. Da has dismissed these allegations, stating that there is no evidence of corruption or misuse of funds. The dispute between the two co-founders has led to a stalemate, with each holding significant control over the treasury and unwilling to relinquish power. 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 relies on Zhang's cooperation, which remains uncertain.