The NEO project's treasury, valued at hundreds of millions of dollars in crypto assets, has been controlled through personal wallets with no multi-sig protections and little formal oversight. According to co-founder Da Hongfei, Erik Zhang, the project's other co-founder, holds around 85% of the assets, 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, replacing the current governance with an independent board, and redistributing tokens to holders.
Zhang has countered with a proposal that includes staying on the board, keeping the foundation in Singapore, and conducting a formal investigation into historical asset management. The dispute has been ongoing since December, with both founders airing their grievances publicly.
Da's plan calls for mutual disarmament, with both he and Zhang relinquishing control over assets. However, the plan's success depends on Zhang's cooperation, and Da has stated that if Zhang refuses, the community should decide the next course of action.