A Co-Founder Holds the Keys to $200 Million in Crypto, Sparking a Governance Crisis

The NEO project's treasury, valued at hundreds of millions of dollars, has been controlled through personal wallets with no multi-signature protections or formal oversight. According to co-founder Da Hongfei, Erik Zhang, the project's other co-founder, holds around 85% of the treasury, worth between $200 million and $250 million, with single-signature control. 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 suggests staying on the board, keeping the Foundation in Singapore, and conducting a formal investigation into historical asset management. The dispute between the co-founders has led to a stalemate, with each holding significant leverage over the project's assets. Da has framed his proposal as a form of mutual disarmament, where both he and Zhang would sacrifice individual control over the assets. However, the success of the proposal depends on Zhang's cooperation, which remains uncertain.