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

The control of hundreds of millions of dollars in cryptocurrency has been a point of contention for the NEO project, with its co-founder Da Hongfei stating that the current setup is unusual and lacks proper oversight. According to Da, his fellow co-founder Erik Zhang has sole control over approximately 85% of the project's crypto assets, including NEO and GAS tokens, which are currently valued between $200 million and $250 million. This amount surpasses the project's current market capitalization of $197 million. The two co-founders have been publicly disputing the issue since December, with each proposing rival governance plans. Da's proposal involves relocating the Neo Foundation from Singapore to the Cayman Islands, establishing an independent five-member board, and redistributing a significant portion of the tokens to holders. In contrast, Zhang's plan suggests keeping the Foundation in Singapore and maintaining his position on the board, while also calling for an investigation into historical asset management to address potential corruption and improper transfers. Da has dismissed these accusations, stating that there has been no misuse of funds. The project's treasury holds approximately $460 million in assets, which is roughly double its market value, and the token has experienced a significant decline of 98% from its peak in 2018. The situation has resulted in a stalemate, with each co-founder holding leverage over the other and refusing to back down. Da has framed his proposal as a form of mutual disarmament, where both he and Zhang would relinquish control over the assets. However, the success of this plan relies on Zhang's cooperation, which is uncertain. If Zhang refuses to transfer the single-signature token holdings to a multisig lock address, the community may need to intervene to resolve the issue.