The NEO project has been controlled by an unusual setup, with hundreds of millions of dollars in crypto assets held in personal wallets with no multi-signature protections and little formal oversight. According to co-founder Da Hongfei, Erik Zhang, the project's other co-founder, controls around 85% of the assets with a single signature, valued at between $200 million and $250 million. This amount exceeds the project's current market capitalization of $197 million. Da has proposed a restructuring plan that includes redomiciling the Neo Foundation to the Cayman Islands, replacing the current governance with an independent five-member 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 two co-founders have been publicly disputing since December, with their rival plans and an unsuccessful mediation effort in Hong Kong. Da's plan calls for mutual disarmament, with both he and Zhang giving up control over the assets.
However, the success of this plan depends on Zhang's cooperation, which is uncertain. The dispute has raised concerns among observers, given the project's significant treasury holdings and the token's 98% drop from its 2018 peak.