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

The treasury of NEO, a 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 around 85% of these assets, valued between $200 million and $250 million, is Erik Zhang, the project's other co-founder and core protocol architect. Da has expressed concerns over this arrangement, stating that it has never been transferred to a multi-signature setup. The two co-founders have been publicly airing their disputes since December, resulting in rival governance proposals and an unsuccessful mediation attempt in Hong Kong. Da has proposed restructuring the Neo Foundation, including relocating it 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 has also called for an investigation into historical asset management, which Da has dismissed as an 'empty accusation.' The situation has led to a stalemate, with both co-founders holding significant control over the project's assets and neither willing to relinquish their power. Da has framed his proposal as a form of 'mutual disarmament,' where both he and Zhang would sacrifice their individual control over the assets. However, the success of this plan relies entirely on Zhang's cooperation, and it remains uncertain whether he will agree to transfer the single-signature token holdings to a multi-signature lock address.