For years, the NEO project's treasury was controlled by a single individual, with hundreds of millions of dollars in crypto assets held in personal wallets and lacking formal oversight. According to co-founder Da Hongfei, this person is Erik Zhang, who holds around 85% of the project's funds with single-signature control. The value of these funds is estimated to be between $200 million and $250 million.
Da has proposed a restructuring plan that would introduce independent governance, a multi-sig protection system, and the redistribution of tokens to holders. In contrast, Zhang's counter-proposal calls for an investigation into historical asset management and the retention of the current governance structure. The dispute between the two co-founders has been ongoing since December and has resulted in rival governance plans and an unsuccessful mediation effort.
Da's proposal involves the creation of a new, independent five-member board and the transfer of token holdings to a multi-sig lock address. However, this plan requires Zhang's cooperation, which is uncertain. The situation has raised concerns among observers, who point to the project's significant treasury holdings and the token's substantial decline in value since its 2018 peak. The NEO project's financial report for 2025 revealed a treasury worth around $460 million, with a significant portion held in bitcoin, ether, and stablecoins.
The report also disclosed a portfolio of venture investments, including a stake in Binance. Da has characterized his proposal as a form of mutual disarmament, in which both he and Zhang would relinquish control over the project's assets.
However, it remains to be seen whether Zhang will agree to this plan, and the project's future remains uncertain.