The treasury of a prominent crypto project has been controlled by a single individual, Erik Zhang, with hundreds of millions of dollars in assets held in personal wallets without multi-sig protection. According to co-founder Da Hongfei, Zhang holds around 85% of the project's native tokens, worth between $200 million and $250 million, with single-signature control. Da has proposed a restructuring plan that includes transferring the project's foundation 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, keeping the foundation in Singapore, and conducting a formal investigation into historical asset management.
The dispute has led to a stalemate, with each co-founder 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 relinquish control over the assets. However, the success of this plan relies on Zhang's cooperation, which remains uncertain. The project's community is left to ponder the best course of action, with the co-founders' dispute sparking concerns over governance and the management of the project's substantial treasury.