The NEO project's treasury, valued at hundreds of millions of dollars, has been managed through personal wallets without multisig protection or formal oversight. According to Da Hongfei, co-founder Erik Zhang controls around 85% of the funds with a single signature, estimated to be worth between $200 million and $250 million.
Da has proposed a restructuring plan, which includes relocating the Neo 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 two co-founders have been publicly disputing since December, with their rivalry producing competing governance plans and an unsuccessful mediation effort. Da's plan calls for 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.